Crypto tax conundrum continues but new sign-ups surge

For years, Indian cryptocurrency investors have been awaiting clarity on how these assets will be taxed. On Tuesday, they got their wish – or so they thought. A day later, with more questions than answers, they find themselves awaiting that elusive clarity once again.

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• Digital rupee on blockchain may not be best idea: experts
• Crypto exchanges say signups jumped 30-50% on Tue
• WazirX founder announces new blockchain venture

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On crypto tax, investors and experts have more questions than answers

The tax on cryptocurrencies and other ‘virtual digital assets’ announced in the budget on Tuesday is set to create a host of problems for investors and tax experts on how to calculate their gains and taxes.

One of the questions they have is on what happens to gains made by investors in previous years – that is, will the tax be retrospective?

The government has also said that losses from crypto cannot be set off against any other income. But what about losses made by investors in previous years? If the tax law is not retrospective, losses from the past could technically be carried forward, tax experts said.

There could also be an issue with how exactly the tax is computed from April to April, they added. Will Indians who saw their crypto assets appreciate during the year and didn’t convert them back into Indian rupees face a 30% tax bill as well?

Crypto investors in India are also trying to understand how tax will be applied in various real-world situations. Some…