The tax dilemma
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Isn't it strange that my ₹10,000 earnings from crypto are taxed at 30%, while stock profits only face a 12.5% tax after a year? Why shouldn't I consider moving my investments entirely into stocks? Doesn't this heavy tax burden push me back to traditional markets instead of encouraging me to learn more about cryptocurrency?
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Your concern is understandable. The 30% crypto tax and the 1% TDS trading limit are not novel ideas, making investing in crypto one of the most expensive ways to invest in India today.
Transitioning to stocks isn't just traditional; it’s a tactical shift for better compounding. Stocks benefit from a 12.5% LTCG because SEBI provides investor safeguards that crypto currently lacks. With a 12.5% LTCG rate and a ₹1.25 lakh tax-free buffer, your money works for you, not the taxman.
Learn about crypto freely, but invest seriously in frameworks that protect retail investors like you.