CONRAD DIAS
Ranchi, June 30: The trading of digital currencies in the last few years has been on a rise not only around the world but also in India. According to the exchanges, a total of around 105 million Indians own crypto assets and more than 1 million people trade cryptos. In Ranchi, many professional traders have been doing intra-day trading to earn their livelihood.
“The percentage return in crypto trading is way more massive than any other assets be it stocks or holdings. If someone has a proper idea of trading and investing in the right crypto, the person can earn profits of around 400-500%,” said Rohit Ignatius, a resident of Kanke who is a full-time trader and has been investing in cryptos since 2016.
However, as the government has imposed 30 percent taxation on all digital assets from April 1, 2022, the value of the majority of cryptos has fallen drastically. For example, Solana, a crypto, was trading at 18,000 INR in November 2022 but has now come down to 2,500 INR. This has led to huge losses for many traders in Ranchi.
Gautam Prasad, a Chartered Accountant from Ranchi, explained the taxation of cryptos in detail.
“Cryptocurrency comes under virtual digital assets. There are mainly two important points about taxation. Firstly, 30% tax will be deducted on profits from any virtual digital assets regardless of the amount. If the profit is Rs. 1000 or Rs. 100, 30% taxation will be implied. However, the 1% TDS will only be applied to profits of more than Rs. 10,000. Secondly, unlike shares, the ‘Set off of losses’ does not imply cryptocurrencies. It means that if a portfolio has been in loss of Rs. 20,000 for FY 2021-22 and in the next year it is in profit of Rs. 10,000, then the loss of Rs. 20,000 will not carry forward. It will be considered as a complete loss,” he explained.
Despite the heavy taxation and fall in the value of cryptos, many traders continue to trade and believe that crypto is the future and value of these digital assets will definitely rise in the future.
“Despite the current loss which we traders are facing, I believe that it is temporary and will surely rise in the near future. The loss is not just in India but around the world and if people tend to withdraw their profit due to the fear, then the market will never go up. It is important that one should have patience while investing in such assets” said Prabhat Kumar, a crypto investor cum miner from Ranchi.
Over 100 million people, or 7.30 percent of India’s entire population, are thought to be cryptocurrency owners at the moment. The estimate is supported by other research, including those from Statista and Hootsuite.
