ways to prevent tax on crypto: The government of India announced that there will be a 30% tax on any type of digital asset which includes NFT & Cryptocurrency. This decision is very bad for every crypto trader as well as investor.
When you start crypto trading earlier you face some losses and according to this new condition on 30% tax, it has become more difficult to make a profit from crypto.
So in this blog post, we are going to see how can we reduce 30% or pay minimum tax to the government. All the above techniques are legal.
Ways to prevent Tax On Crypto?
Here is a list of some ways to reduce Tax On Crypto:
- Hold for a long time.
You do not have to pay tax on crypto holding. Tax is deducted only on transition. So if you believe in crypto you can hold good crypto coins like Bitcoin, Polygon, Etherium, etc
- Stake crypto and generate passive income.
You can also generate passive income by not selling or doing any type of transition.
Crypto coins like USDT and Binance USD are pegged with USD. This means their price changes with the USD which stable currency in the world.
So buy and hold crypto like USDT, Binance USD ( any stablecoin )
- Switch to tax-free countries.
If you are a big crypto trader then you can switch to crypto tax-free countries like Dubai, Malaysia, etc to save your massive loss.
- Use decentralised exchanges.
If you have to save crypto tax then you can use decentralised exchanges like Kucoin which do not have any type of verification so that no one can track your transaction.
- Splits profit in different years.
Crypto tax is applicable only on transition and profit. If you have some losses In crypto then you can spilt your profit to next year and manage tax with loss.
Is it not good to pay tax on crypto?
According to my opinion paying taxes to the government is good. If you are not paying any type of tax to your government then it is illegal.
In India before the declaration of the annual budget, it was not clear whether any digital assets like NFTs and cryptocurrency are legal or not.
The government is applying a tax to a digital asset which means they are trying to understand what are the uses and whether is it beneficial to make these assets legal.
In the future government can reduce tax on crypto and everybody can feel free to invest and transition into crypto.
So pay tax or reduce the transition on crypto in present.
How to calculate crypto tax?
Managing crypto tax is a very long process without any smart tool. So to calculate crypto tax we are going to use one tool.
With the help of the following tool which I am going to tell you can generate a full detailed report and save your time.
The name of that tool is koinly. To generate a report with koinly watch the following tutorial:
Related Posts to ways to prevent Tax on crypto.
- what is a crypto airdrop?
- What are stable coins and how to earn from them?
- Best Alternatives to bitcoin.
- Best crypto trading bots
Is crypto legal now in India after taxation?
No, it is not clearly mentioned in the budget that crypto is legal in India.
Is crypto Tax good for us?
According to me, we should pay crypto tax because of this crypto can become legal in India.
Is crypto selling taxable?
Yes, on every transaction on crypto you have to pay tax.
I hope that you understand all information on ways to prevent a tax on crypto.
if you like the above information then you can share this blog post with every crypto trader friend so that he can reduce his crypto losses and make more profit with crypto.
At last, I want to say that always follow government laws and conditions you can reduce some amount of tax you cannot be tax-free in crypto. After some time crypto tax might be reduced.