Cryptocurrencies have been rapidly gaining popularity, especially in Asian countries with India being fourth. By the end of the second quarter of 2022, emerging markets are becoming more active in the crypto ecosystem.
Despite its volatility and heavy controversial opinions, like every traditional asset class, cryptocurrencies also have a host of tax rates investors need to compensate for when transacting. From April 1st, the government of India has imposed a tax rate of 30% on digital assets and from July 1st, a 1% TDS.
Co-founder of TaxCryp Technologies, Vaibhav Gupta claims that planning to work around taxes on the transfer of cryptocurrencies is near to impossible since the government has imposed a water-tight tax regime of 30% on all transactions. However, airdrops and interest from deposits are only taxed depending on the bracket the taxpayer falls in. This can protect crypto investors from the harsh 30% tax.
Despite the bearish market, there is a constant flow of new users, especially from India. Reports claim that new users tend to stay in the market even if prices keep dropping. This helps improve the crypto ecosystem and pivot the momentum of the market.
Crypto Airdrops
Crypto airdrops are a method for investors to earn free crypto. Firstly, the investor will need to complete a task to meet the eligibility criteria for the crypto project. After the given tasks are completed, investors will be awarded claimable crypto, or it will be directly deposited into the wallet.
Crypto Savings Accounts
Investors holding a crypto savings account can earn interest on the deposit of their crypto into this account. Here, the investors will decide to lend the money to a borrower. The interest rates the borrower pays with the borrowed amount will be paid to the lender. Many claims that crypto interest deposits earn higher returns than traditional bank savings accounts.
