Binance owned Indian crypto exchange against unfair & unclear tax rules

The chief executive officer of WazirX crypto exchange raised his disappointment against the unfair laws and rules on crypto tax of the Indian government. 

WazirX is a Binance owned Indian crypto exchange, which is giving its crypto services to the Indian people and also allowing the traders to transfer flagship assets transactions from/to WazirX to/from Binance without any cost. At present, WazirX is standing at the first rank in the crypto industry of India.

On 6 March, Nischal Shetty, founder, and CEO of WazirX exchange wrote on Twitter about the problems with the newly introduced crypto tax rules, which impose a 30% tax on each trade income. 

 Nischal raised three questions on the current crypto tax law of the Indian government. Through the first point, Nischal claimed that a 30% tax on crypto trading is not under the tax slab system of the India.

” Crypto profit tax should be as per income tax slab.”

The second problem pointed out by Nischal is the 1% TDS system, which is not a profitable option for both government and people in any way because crypto traders’ trade is not limited to particular numbers of transactions/trade.

“1% TDS is lost for the Government and People as both will be caught in a refunds loop.”

Third point that Wazirx CEO raised is the same 30% tax on Airdrop for those tokens, which have no liquidity at all, that means a coin which is worthless because of no options available to buy sell on exchanges can’t go through tax system because of no backed value. 

“Gift tax? What about Airdrops? Airdrops of tokens that don’t have liquidity?”

In this way, WazirX CEO shared his point of view on Twitter and clearly stated that he is asking the right questions, which are necessary at present under this crypto tax rule of India.

In a detailed Tweet thread, Nischal suggested a solution to the government of India to look at the ground level, where tax rules are not applicable on many numbers of crypto traders, which are in the age range of 18-25 years. 

On the 1% TDS system, Nischal said that if a person will trade with his funds around 100 times then his all funds will disappear, so the government should consider these things. 

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