Crypto Portfolio Management new business line amongst firms

Clear (formerly Clear Tax), which is backed by US- based payments major Stripe, is launching a crypto tax and portfolio management service for enterprises and retail users in India, amid confusion around crypto taxation in certain scenarios among investors and crypto exchanges.

Following the Budget’s proposal on crypto taxation, including 30% tax on crypto gain and a 1% tax deduction at source, questions remain around tax implication of futures and derivatives trade, loss setoff, transactions on crypto aggregators and the definition of transfer of assets class (will it include peer-to-peer, airdrop etc.), according to experts ET spoke to. “So, from a trading perspective, there’s a lot of clarity awaited.

Right now, even crypto gain to a crypto loss appears to be a pure tax event and there is no setoff against loss.

With the strictest interpretation for active traders, the tax bill itself can be bigger than the portfolio, so we are trying to understand more from the policymakers,” Clear founder Archit Gupta told ET. “This could dramatically affect trading volumes on exchanges.”

Incidentally, swathes of crypto holders were expressing their discontent over the gambling-like tax regime proposed for crypto investors and the hashtag #reduce-crypto tax was trending on Twitter Thursday. S-ET

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