Mithinga Muchahary

Just want to explore....🔥

[Nischal Shetty @NischalShetty]

Day 715

Why is no loss set-off an issue for crypto traders in India?

Crypto traders invest across multiple tokens. It’s a standard way of investing in crypto.

Some tokens make money and in some tokens they may lose money.

The objective is to net net make a positive gain.

Investing in multiple tokens is a form of a hedge so that the chances of a positive return are higher. Everyone understands the concept of “Do not put all your eggs in one basket”.

However, with no loss setoff, this ability to hedge has been taken away from the millions of crypto investors.

Example:

1. Invest INR 100 in Token1
2. Invest INR 100 in Token2

Total investment: INR 200

1. Profit INR 20 in Token1
2. Loss INR 20 in Token2

Typically, this would mean overall no profit or loss. However, due to existing tax model, traders need to pay income tax on the INR 20 profit while ignoring the loss in the second token. This leads to a further loss for traders.

We hope this is reduced as it’s causing unnecessary stress and loss to the millions of traders who are trying to make a career in crypto 🙏

#BuildWeb3 #reducecryptotax

[Mithinga Muchahary @MithingaMuchah2]

Thanks Polyphia for spending 248 minutes with me in 2022. I couldn’t stop listening to G.O.A.T.. #SpotifyWrapped https://t.co/DWeKOrNm6t

[Virat Kohli @imVkohli]

With you by my side, I am at home anywhere ❤️
@AnushkaSharma

[Mithinga Muchahary @MithingaMuchah2]

@TheGTABase San Andreas for sure.😅