Editorial
Make Capital Gains Tax for Cryptos on par with the shares in India
As per the latest Supreme Court ruling of crypto currencies are not illegal. So, the gains derived from sale of crypto currencies can be classified as either capital gains or business income. Based on the classification only, the crypto holders may decide the payable tax. It appears that if it is a long-term capital gains (that is the benefactor is holding that asset for more than 36 months), then the benefactor has to pay a slab of 20% flat rate. And for the short term, it may go up to 30%. Already, the crypto traders have to pay 18% GST (that also up from an earlier 14%). It is the right time to simplify the tax structure for crypto buying / selling and capital gains associated with cryptos in India. For the shares, the long term is just 10% and short term is 15%. The tax percentage for the cryptos should be the same. The crypto community should take this matter to the concerned officials and present a convincing case. Otherwise, the matter can be filed in the Supreme Court as Public Interest Litigation. The crypto and token economies resemble the share market in many ways. The tax structure for cryptos should also resemble the same.
Editor-in-Chief