Crypto Basic — IV

Title: Is crypto Legal in India?

Any Indian citizen can trade and invest in cryptocurrency. Trading or Investing in crypto is not illegal. However, cryptocurrency is not a legal tender in India, which means it is not accepted as a payment mode officially in India, though certain companies are accepting it at their risk.

Some the countries like EI Salvador and the Central African Republic has made Bitcoin legal in their country. Yet, India has not initiated any move to make it a legal tender. Hence, the government will not be responsible for any fraud or losses in cryptocurrency.

People in India can participate in the cryptocurrency ecosystem and start blockchain businesses using cryptocurrency. Reports say, 18% of super-rich people in India invested in cryptocurrency.

Crypto in India is evolving with the invention of new applications like weTrade that encourage people to invest in crypto with great rewards.

However, the regulation of cryptocurrency in India is under discussion. India has implemented two new tax regimes on cryptocurrency.

1% TDS :

When selling cryptocurrency, 1% tax will be deducted at the source. No matter if the user booked a loss or a profit, the user has to pay TDS. It came into effect on 1 July 2022. weTrade is refunding this back to its users instantly to offset this burden.

30% Tax on investment:

Income through VDA profit has been taxed at 30% at the end of each financial year. 1st April 2022 marked the start of the new tax regime.