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Can you avoid 30% tax on income from crypto by purchasing it from foreign exchanges?

It is important to note that there is no connection between tax and crypto exchange platform location.

New Delhi: Ever since Finance Minister Nirmala Sitharaman imposed a 30 per cent tax on the income from the transfer of any virtual digital asset in India, many people are looking for different ways to avoid tax. In virtual digital assets, cryptocurrencies also come. So-called market experts are also advising innocent investors that they can avoid 30 per cent tax by investing on foreign exchanges.

The new tax rules came into effect from the start of the financial year 2022 in India.

This is the reason we decided to explain to you the rule of crypto tax in India. Furthermore, we also tell you, can you avoid 30 per cent tax on your income from crypto?

Crytpo tax in India 

It is important to note that there is no connection between tax and crypto exchange platform location. Legal experts suggest not falling fray to any so-called experts. They say investors must not be confused with a tax on exchanges. Talking to a leading daily, Sameer Jain, Managing Partner at PSL Advocates & Solicitors said, ”In my view irrespective of the location of the exchange, income would be chargeable to tax for the reason that the taxable event is the profit earned through cyrpto tading for assesses in India.”

Tax on foreign exchanges

The stringent tax rule on cryptocurrency is forcing many Indian crypto exchanges to set their business in Dubai or Singapore. The Indian government’s new rule of crypto is applicable on the income from crypto irrespective of the income’s location. If you make income and do not pay tax, it would be considered tax evasion.