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      India gain 0.07% Crypto Tax Payers and Over 99% Global Investors Evaded Dues : Report

      Crypto community of India has not very supportive of the tax rules that the government enforce on the trade of virtual digital assets in 2022. It is estimate that only 0.07% of Indian crypto owners actually declare and paid their taxes in the year of 2022.

      This finding has been publish by, a Sweden-based tech research firm Divly, it also claim that on a global level just 0.53% owners declare their crypto holdings to their local authorities in 2022.

      The report has compile the percentages of crypto tax payers across 24 nations.

      With 4.09%, Finland clock the maximum crypto tax payment rate.

      Philippines rank the lowest with the percentage of crypto tax payers at merely 0.03%.

      India settle at the third last spot on this index with just 0.07% crypto holders who paid their taxes.

      Divly said in its report :

      “We adopted a multi-step approach to estimate the tax payment rate for cryptocurrencies in various countries. The methodology involved using official government figures, search volume data, and available cryptocurrency ownership data. Our research used a combination of official government figures and search volume data to estimate the number of cryptocurrency investors who declared their activity to their local tax authorities,”.

      Indians, in June 2022, began to see one percent tax deductions on each crypto transaction.

      This means that 1% TDS is being levied on every step around the purchase, trade, and deposit of crypto assets.

      In addition, Indian crypto holders also have to pay a 30% tax on all crypto profits.

      The two rules have time and again criticise by the Indian crypto community for hindering the growth of the sector with financial pressure.

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      It is estimate that India’s crypto circle could swell to over 156 million users by the end of 2023.

      If this is the case and if Divly’s report is to be believe, it is rather alarming that only around 100,000 crypto holders declared their holdings and paid the due tax amount in India in 2022.

      Yet, the tax payments around crypto did manage to collect millions for the government treasury in India.

      In the last nine months, the TDS collect from crypto tax amount to over $19 million (approx. Rs. 157 crore).

      The detail was disclose to the Parliament recently by Pankaj Chaudhary, who is the Minister of State for Finance in the country.

      In India, KoinX provides crypto taxation services to get community members to adhere to the tax rules.

      Launch in 2022, the company claims to be already working with crypto firms like CoinDCX, BitBNS, CoinSwitch, WazirX, Binance, and KuCoin among many others, to manage their taxes in India.

      Individual investors can also use the platform to calculate their crypto taxes.

      Many other nations have also levied taxes on crypto trading and profits.

      The aim is to maintain some track of crypto transactions, that are otherwise largely untraceable.

      Italy, Brazil, and Portugal are among many other nations that are working on taxing crypto activities.

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