Mind tangled in confusion : To cashout 'Bitcoin' or to pay 'Tax'!

Ever since Donald trump came into power after the Election, the cryptocurrency market's have witness a sudden surge. The Bitcoin, the world's largest cryptocurrency, has risen more than 45%, reaching its highest point ever of $99,249. The growing excitement has taken the global cryptocurrency market's value above $3 trillion to a record high. We are inching closer to the magical $100,000 figure mark. Looking at the charts and market mood, it is not far away to witness something special in the crypto markets in next few days.

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The mood in the market is such that every Investors who have invested heavenly on #bitcoin are in state of FOMO. This time there is another kind of FOMO in the market. Investors were looking to cash out with as higher amount as possible. With every surge, they greed and expectations, increases and they are in dillusion whether to book profits , to cash out or to look out for more growth. It happened to my friend, who recklessly cashed out when the price rose to $92k and now regretting. But the importsnt lesson that I learnt is not to expect more and leave the greed factor behind when it comes to investment.

A lesson hard learned!

People often carried out with market expectation to cashout more and more, but in my opinion, while doing investment, it is importsnt to set up a target amount in mind. The market is volatile, and we cannot make a big assumption. If we are clear of our target return , then, we would be pretty happy, anything above will be an additional bonus. As soon as the target achieved it is better to more expectation behind, and look put for fresh target or more investment opportunities.

Coming back to the main concern that many of my Indian friends would be facing is about taxation. With the surge in #btc prices many of the investors must have cashed out their investment or planning to do so. However they were now bothering about the taxtation system prevailing in our country. Indian government have categorised cryptocurrency under VDA I.e Virtual Digital Assets. Whether we are a private investor, a trader, or simply receiving crypto as a gift, every transfer and transaction may be taxed in India.

The Reserve Bank of India (RBI), the country's central bank, has clarified that virtual currencies do not have any official backing and are not regulated by any governmental authority.

In India, we have two taxation in place for VDA I.e cryptocurrency.

1. According to Section 115BBH of the Income Tax Act of 1961, investors are required to pay 1% TDS (tax deducted at source) when transferring cryptocurrency tokens. A 1% TDS applies to transactions exceeding ₹10,000 (or ₹50,000 in specific cases) in a financial year. This is automatically deducted by the exchange during transactions, eliminating extra paperwork.

2. The investors must pay a flat 30% tax on any earning generated from cryptocurrency transactions. Since FY 2022-23, a flat 30% tax is levied on crypto gains, irrespective of our income bracket.

Furthermore, any losses incurred in cryptos during the year cannot be offset against crypto earning or any other source of income.

What next?

Cryptocurrency is often considered "the future" due to its decentralized nature, which allows for fast, secure, and borderless transactions with minimal fees. However, it is important to acknowledge the volatility and regulatory uncertainty surrounding the crypto market. Even though the prices reached to top, still many people in India were not happy paying or comfortable about the heavy taxes on their investment return.

The prices rises more than the expectation will goi g to be consumed in the taxation. They have to be content, with whatever they get after deduction of taxes. They were in a peculiar situatio, whether to cherish the #bitcoin surge or to regret for the higher taxes they.

Peace!!

Namaste @steemflow

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