The first quarter of the year and the last quarter of the financial year is about to end in a couple of days. This is the period when we need to finish all the required actions related to taxation so that nothing is missed out in the current financial year. In the case of employment, there is nothing much to do because the organization itself does it for the employee, and all the deductions for taxable income are done by the organization. Other than salaried income people are expected to take the correct action before the due date.
Now crypto in India is taxation as part of the income tax and event TDS is applicable on all trading transactions. This quarter seems to be good for the government as they have collected a mess your mount which is 158 crore INR and in the last quarter, they had collected about 60 crores. There is a big jump in the amount which simply means that there are more people who started trading on Crypto which is why the collection has also increased. The current rate of TDS is 1% which is very high but still, people are dealing in Crypto transactions and we can say this based on the TDS collection that has been collected by the government.
It is a good sign for the Crypto community in India that even in the bear market lot of people are trading in Crypto. Things are going well and this collection is only based on the transactions done in Indian exchanges whereas there is a possibility that a lot of users are trading on international exchanges and even on Dex. The adoption of Crypto in India is growing and during the bull cycle, we have seen how things were happening where the exchanges were flooded by the new applications for the account KYC. This was a great time for these Indian exchanges where they were able to make a lot of money and hopefully, with the next cycle, they are going to experience even better provided they are ready to cater to the demand.
The Minister stated that Crypto assets are currently unregulated in the country, however, transactions in cryptocurrencies are subjected to provisions of various laws like the Prevention of Money Laundering Act, 2002, and Income-Tax Act, 1961.
Crypto is not here for one day or one month instead it is for the long term it seems that people are trying to understand the concept and this is why more people are getting onboarded. This is also a time when the exchanges in India need to understand the need of these users and make their platforms easy to use and trustworthy because it is something related to money. Some of the exchange in India does not provide Crypto withdrawal which is not a fair practice. This is a basic nature of the blockchain where transactions are allowed and anyone can deposit or withdraw any Crypto without any issues. Sometimes wallets are under maintenance but this time should not be too long. When people are not able to withdraw their own funds then something is wrong for sure because this is stopping them to use their friends whenever they want.
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