India Taxing Crypto Profits at 30% Rate, Differently from Salaries

India's tax policies treat salary income and crypto gains differently. A ₹12 lakh salary is taxed under regular income-tax slabs, but VDA (Virtual Digital Assets) gains are subject to a flat 30% tax rate. This means that someone earning ₹12 lakh from digital assets will face a higher tax liability than someone with the same salary.

The government views crypto trading as high-risk and highly speculative, which is why it's taxed at a higher rate. This approach aims to discourage excessive retail trading and generate revenue for the country. However, this policy may have unintended consequences for Indian crypto participation, making frequent trading less appealing due to the 30% tax on VDA gains and the 1% TDS (Tax Deducted at Source).