Crypto platforms to launch new products to save tax

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Crypto platforms to launch new products to save tax
21 Feb 2022
7 min read

News Synopsis

Crypto trading platforms are launching new products for investors to save tax. These investors basically look to get better returns on their investment without any deduction in the form of tax. In the recently announced Union Budget, the government announced that they will be charging a 30% tax on virtual digital assets. The government used the word ‘virtual digital assets’ and not ‘cryptocurrency’.  On this, the investors said that there is not going to be any deduction on cryptocurrency products. Darshan Bathija, cofounder and chief executive of Vauld, a Singapore-based cryptocurrency exchange said: “The way the regulations are today, investors who invest in crypto-based products should not be covered either under the 1% TDS, or 30% tax on income. However, we have sought clarity on this from the government and will be approaching them in this regard”. Kumar Gaurav, founder and CEO of Cashaa said: “It (tax) will increase our operations as people will prefer to take out a loan on their crypto holding, instead of selling it to avoid the tax implications”. However, there is still no clarity as to how will tax on cryptocurrency will be implemented and how this is going to affect the investors.