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.

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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.

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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.

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Anupama Das

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

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