Cryptocurrency is popular all over the world including India. Like any other country, more young people are showing interest in investing in cryptocurrencies.
Indeed, after huge profits in 2021, people are expecting a positive start in 2022 as well. With good knowledge of cryptocurrency and current market, it is easy for people to invest in cryptocurrency. You can click Gain oil Learn more about Bitcoin trading.
Recently, during the announcement of the budget for the next financial year, Finance Minister Nirmala Sitharaman announced the introduction of digital rupee in the next financial year. At the same time, he has even announced that profits from crypto investments will be taxed.
The amazing part was the tax slab. India is going to levy 30 per cent tax on any income from cryptocurrency investing and trading. This is a very large slab. Now the million dollar question is, “Is it logical to invest in crypto in India after 30 percent tax?” So, what do you think about it? Should You Still Consider Cryptocurrency Investing? Check out some more details from us before you decide on this factor.
But the reality is that people are still showing the same interest in investing in cryptocurrencies. There can be many reasons for human interest. Here are some of the main ones:
Makes it valid:
One of the best things about the imposition of taxes by the Indian government is that the assets become legal. In many countries no cryptocurrency is accepted as legal. If India tries to impose 30 per cent tax, it also shows that it is going to be legal soon. So, your investment will be safe. There will be a law that will help you in case of any problem.
The next reason why it is better to invest in cryptocurrency even after paying 30 percent tax is because the number of investors is increasing. When the crypto market is legalized, there will be more investors. As long as the number of people accepting it increases, the price of cryptocurrency will remain stable. So, the chances of losing money are going to be less.
When there is regulation in the crypto market, it is easier for people to invest and trade in cryptocurrency. It became one of the best places for Indians to invest.
But there are other things you should know. There may be some reasons for this but they are not the right reasons. Because the Indian government is going to introduce digital rupee. This is the only digital rupee that is going to be legal tender. Any other cryptocurrency is not valid and will not be considered as legal tender.
Cryptocurrencies are assets that can be bought but the government of that country approves such transactions. The price is not determined by any governing body and therefore is not considered a legal tender.
Should You Still Invest in Cryptocurrency in India?
It is important for everyone to understand that investing in cryptocurrency is not approved by any government or bank. No one guarantees any transaction made for trading or investing in cryptocurrency. If you succeed, you will be able to make a profit. And if you fail, your investment will suffer. Your government will be responsible for this.
Paying 30 percent tax only applies to profits from cryptocurrency. That means if you lose a certain amount, and you’re at a loss, you don’t have to pay anything. You only pay taxes when you make a profit. Such huge tax slabs are only suitable for those who are looking for long term investment. If you are an intra-day trader or looking for some short-term investment options, this will be a problem for you.
Another noteworthy thing about tax in India is that not all transactions made in this financial year are tax free. This means that even those who are already involved in cryptocurrency trading or investing should keep this in mind. It’s not just after the introduction of digital rupee. So, think and start investing in cryptocurrency in India.