Zerodha CEO Nithin Kamath thinks that the Crypto-tax introduced in the recent Union budget inadvertently helped Indian investors from heavy losses.
Kamath took to Twitter to explain in a thread how Indian investors got lucky because of the recently introduced Crypto-tax.
The CEO of the stock trading platform highlighted that as a result of the crypto tax, retail interest in crypto markets significantly fell. He further added that if not for the taxation, Indian investors would have ended up trying to buy the dip and averaging down, getting trapped in the cycle.
Finally, Kamath gave the example of the stock of Yes Bank in 2019.
While presenting the Budget 2022-23 to the Indian Parliament in February 2022, Finance Minister Nirmala Sitharaman proposed the taxation of crypto assets.
Sitharaman put forth that effective April 1, 2022, crypto investors would be required to pay a flat 30 per cent tax on gains on crypto investments
She also stated that there would be no set-offs and no carry forwards for crypto losses.
This move caused a steep drop in trading volumes across several KYC-compliant crypto exchanges in India.
Also Read: CBDC will be rolled out this year: RBI - BusinessToday
Also Read: New Town Kolkata Development Authority explores NFTs for land records - BusinessToday
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today