‘Death by over-regulation’: Losses from one cryptocurrency cannot be used to offset gains from other crypto under new tax rules in India
India has introduced a number of new tax rules for cryptocurrencies. The most eye-popping clause is without a doubt the stipulation that losses from one crypto asset cannot be used to offset gains in another.
So, in other words, if you lose some in trading Bitcoin, that cannot be offset vs gains from another asset, for example Dogecoin.
“Death by over-regulation seems to be the strategy,” as one analyst called it.
Moreover, if you are mining, you cannot treat the mining infrastructure investment as costs.
This comes on top of a flat 30 per cent capital gains taxes and 1 per cent TDS.
Moreover, as per the new rules, Indians cannot carry forward losses to another year, and it seems that even in the same year, you cannot adjust it with gains from another asset.
“The government is on a path of de-facto killing crypto by over regulation. If you make the taxes so high and the compliance so expensive, no one will ever invest in crypto – that seems to be the thought process of this utter s**t government,” one analyst on Reddit said.