Native Crypto Investors in India Face Tax Tension

Investors who invested in the algorithmic-stablecoin Terra throughout the globe lost billions of dollars as the cryptocurrency crashed. Yes, a new token was introduced to recompense the old one but it could only rebound only a little part of the loss. On the other hand, Indian investors are not that fortunate to do the same.

pexels roger brown 5126268 1

India’s tax regime has penalized cryptocurrency investments. as a result, the Investors who hold TerraUSD and Luna are facing issues in receiving the Luna 2.0 in an ‘airdrop’.

As per the tax experts, they can be taxed up to 30% of the value of the received tokens as well as they won’t be compensated for any gain in this new one against the losses in the initial one.

pexels laura tancredi 7083887

The country’s new cryptocurrency tax regime effective from April 1 says that all the incomes from the crypto transfer will be taxed at a fixed rate of 30% though it has not been designed how the airdrops should be taxed.

On May 9, around 160000 investors held Luna in India and this number rose up to 77% by May 15, said the Vice President of WazirX. But it is still unclear how many investors actually held TerraUSD.

Anupama Das

An active reader and follower of news. A budding journalist tries to spread authentic news to people.

Leave a Comment