Crypto tax: Many traders sold over 50% of their portfolio before April 1, says survey

A large number of crypto traders in India sold over 50% of their portfolio before the 1st of April 2022, when a new rule mandating a 30% flat tax on income from cryptocurrencies became effective, according to a survey.

A Trader Sentiment Survey conducted by WazirX and Zebpay reveals that most of the crypto traders in India believe that the recent implementation of crypto tax laws has deterred their trading frequency. The survey indicates most of the traders are contemplating shifting to international exchanges due to high taxation in India.

The survey involved 9,500 respondents who have actively traded from the start of the year till 15th April 2022. As many as 83% of traders believed that the recent tax implementation deterred their trading frequency. Around 24% of respondents said they were contemplating shifting their trading activities to international exchanges owing to the high taxation. Also, 29% of the respondents traded lesser than the pre-tax period.