An online survey on crypto investing was conducted recently by professional services firm Deloitte in partnership with the Times of India. More than 50% of their 1,800 respondents had already invested in crypto assets and said that they will continue to do so, while a further 26.8% were waiting for clarity on crypto regulations and taxation to enter the space.
A whopping 15 to 20 million Indians have invested in crypto assets worth over $6 billion or ₹40,000 crores so far. According to the study, this coincides with why an overwhelming 77.4% of the respondents want crypto investments to be treated similarly to other security investments.
The survey also indicated a tremendous interest in crypto as an asset class. Nearly half the respondents, 48.5% to be precise, wanted to learn about investing in digital assets. As many as 39% of those surveyed said they already understood the crypto segment well, while only 12.5% said that they were unfamiliar with it.
India’s New Crypto Tax: How Does It Play Out?
In her budget speech for 2022, shortly after the Deloitte survey, Finance Minister Nirmala Sitharaman announced that a flat 30% tax will be levied on income earned from the transfer of virtual digital assets like crypto and NFTs (Non-Fungible Tokens). Additionally, 1% TDS (Tax Deduction at Source) will be charged on any payments made in relation to digital assets.
Through Budget 2022, for the first time, the Finance Minister has announced a clear tax policy on crypto investments in India.
Despite the high tax rate, industry experts have welcomed the move. While a crypto bill regulating digital assets is still in the making, the budget proposals have legitimized crypto as a financial asset class on a par with other securities.
On the whole, taxation clarity on crypto investments is a positive step that will induce new investors into the emerging asset class.“Today’s digital-savvy Indians are willing to experiment with this emerging asset class. The budget provides clarity on taxation and shows the government’s intent to take a business-friendly approach while protecting the interest of consumers and the exchequer,” Ashish Singhal, co-chair of IAMAL and CEO of CoinSwitch Kuber, tweeted.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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