The BIG News of Income Tax on Cryptocurrency Gains in 2022

Didn’t see that coming, did you? Well, a lot of investors, traders & other participants in the crypto industry were taken off guard when the conclusive statement was made by the finance minister of India regarding the tax regime on ethereum trader app. The union budget of 2022 was filled with dynamic changes & announcements regarding the prevalence of digital currency in the country. Considering the rampant increase in the users of cryptocurrency across the world, the governments around the world had their respective takes on this prominent topic. Some embraced it with open arms while others remained firm in preventing their citizens from cryptocurrency to curb the illegal activities being conducted under its pretence.

Income Tax on Cryptocurrency Gains in India

Bitcoin Era explores the intricate details around the taxation system that has been newly introduced in the country. The taxation on crypto gains was inevitable and it is only logical to do what the Indian Government did. Not giving in to the latest trends and maintaining a firm stance against the cryptocurrency’s prevalence, government officials don’t shy away from warning people of the prevailing risks of such unregulated currencies. What does the future of cryptocurrency hold in countries like India where significant taxation on capital gains is a reality? It has become a highly debatable topic in current times.

Capital Gains and Taxation

The process of taxation is still quite ambiguous since it doesn’t clarify some of the predominant areas. But, there is one thing to be kept in mind the process of taxation will be levied according to an individual’s activity along with the treatment that has been embraced by a particular taxpayer. The tax rate will remain unaffected if the income that is generated through an exclusive cryptocurrency transfer is a business income. The recent rates in terms of capital gains are 20% if the capital gain is of long-term nature i.e., 36 months or longer.

On the other hand, the rates will be levied as per each individual if the security is held for less than 36 months. So, it has to be kept in mind before making buying any security and the rates will fluctuate as per individual so that’s another thing to be kept in mind.

Finance Minister Declaration

The Government of India has also proposed that a tax of 30% will be levied on the transfer of digital currency or any cryptocurrency asset. Moreover, the deduction will not be allowed apart from the acquisition cost. However, the government has started to acknowledge cryptocurrency as an asset class along with bringing crypto trading under the purview of legal activity in the country.

In addition to this, such clarification made by the finance minister will hook more people to the government-autopsied crypto trading which will provide a necessary impetus to the overall growth of the industry in the country. This will also facilitate a precise environment for crypto trading that was being conducted on illegal terms earlier.

There is one big shortcoming, however, that the possibility of taking forward the transaction loss in the subsequent financial year will not be entertained by the government. Considering the highly volatile nature of cryptocurrency, it is a quite favorable move for investors. Such announcements were being highly anticipated because the prospects of earning income and registering growth through cryptocurrency are a big deal for the population now.

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Will crypto prominence be faded by the tax dominance?

Digital assets have gained significant traction in the country and their popularity continues to sail past consecutive milestones effortlessly. The overall volume of trading has also proliferated significantly over the years. All the efforts that have been channelized to put a firm bridle on the pace that cryptocurrency operates with in the country seem to come with full effect. The government is constantly working towards eliminating all the possible facets that serve as a crypto-magnet for the people. This also comes in the form of a 30% slab of tax rate which will undeniably deter a lot of people from transferring any sort of cryptocurrency in the future.

So watch out for the latest trends to stay updated with the dynamic changes that are inevitable in this landscape.

5 Things to Check Before Selecting a Bitcoin Trading Platform

In the last few years, trading in Bitcoins has now become much more mainstream. With the rise of credible trading platforms and exchanges, anyone with a few dollars to invest and an appetite for success can start trading in Bitcoins or any other cryptocurrencies.

Choosing the best Crypto trading platform or Bitcoin trading platform can be difficult for new investors because several factors need to be considered. Bitcoin trading simply means buying and selling Bitcoins.

Before investing in Bitcoin, keep in mind that the price of Bitcoins is highly volatile. This factor is preventing many investors from investing in this valuable asset. This is a very crucial factor to understand the perfect time for selling or buying the currencies, but having trading bots sometimes helps to figure out the factors and it helps to manage the trading with more convenience.

There are various benefits of investing in Bitcoins, and some of the benefits include low transaction charges, data protection, high security, no third parties, and much more.

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Selecting A Bitcoin Trading Platform

There are various Bitcoin trading platforms available on the internet but choosing the best one is crucial for every user. Thus, there are five major factors that you need to check before selecting the right Bitcoin trading platform.

1. Fee

Every Bitcoin trading platform has some amount of fees. You must proceed only on that platform that charges a genuine amount for trading.

If you are a new investor and join the Bitcoin market, this factor is crucial to consider at any cost. Trading fees differ for every platform, and if any platform is charging low fees, you need to be very careful about the security of that particular exchange platform.

2. Fiat Exchange

Fiat exchange is another factor that you need to consider before trading Cryptocurrencies such as Bitcoin. Every trader, at some point, needs a fiat exchange. This exchange can help their amount to convert into national currency.

Hence, if any trader or investor wants to get out of the Crypto world, this exchange’s procedure can help them. On the other hand, before choosing any trading platform, make sure the platform is compatible with your banks, and if it is not compatible with your account, you can proceed with the other one.

3. Security

Security is a very vital factor that every trader should consider choosing the best Bitcoin trading platform. Every trading platform has its security features.

If you choose the best Crypto trading platform, make sure the platform has two-factor authentication. It is the enhanced feature of every security system. You should not choose any platform that is not offering you good security features. Instead, opt for that platform that offers excellent security features, even if the charges are high.

4. Reputation

Reputation is a key factor that you need to check before selecting a Bitcoin trading platform. The reputation of several trading platforms can differ.

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You can research more on the internet about the reputation of that particular platform. You can also consider several traders’ reviews, which will help you choose the best one. Bitcoin is regarded as a young technology that was invented just a couple of years back. Thus, you will get information about every trading platform you are willing to select on the internet.

5. Insurance

Keep in mind; the best Bitcoin trading platform will have an insurance fund in place. Hence, opt for those Bitcoin trading platforms that provide insurance funds with good security features.

The best exchange platform will be protected to some extent. The trading platform that has several features can make your trading a successful one.

The Bottom Line

Every Bitcoin trading platform has its way of dealing with traders. You can also look at the leading Bitcoin trading app 1g ProfitSystem and earn high returns on investment. Trading in Cryptocurrencies such as Bitcoin can be a very profitable asset for you in the end.

The benefits of trading in Bitcoin can be very effective for you. You just need to gain some expert marketing skills to deal with all kinds of trading or investments. Thus, before choosing any Bitcoin trading platform, read the above instructions carefully. The above data will help you, to some extent, while selecting a suitable exchange platform to trade your digital currencies.