Let me start by saying that the Taxation in India is currently starting to look way worse than it was in the past decade or so. There have been numerous instances where the taxation on certain goods or services has been significantly increased and because of that, I don't feel like a lot of people are happy about it. The thing about taxation is that if the amount of taxes the common people are paying is close to what they are getting in return from the Government then the taxation is absolutely justified but lately that doesn't seem to be the case.
The first of many things that came was the GST which stands for Goods and Service Tax which stated that instead of paying different types of taxes on Goods and Services people should just pay one single tax in the form of GST and the tax money which is garnered from that gets divided within Central and State Government. This sounds like a great plan and is theoretically a good way to collect tax, but this GST comes with many caveats and books to maintain. Plus every year they revise the GST tax bracket and almost every single time things are getting costlier on the tax bracket. So I am not so sure that this was a good option for the General Public.
The next thing that the government of India cracked down on was Cryptocurrency taxation where they just simply put a flat 30 percent taxation on any profits made via Cryptocurrency with no place to offset any losses incurred. So basically the government forced high taxes on crypto and kind of lowered the overall Crypto Volume from India. If you ask me that was the wrong decision as I am pretty sure the overall tax money that the government is getting is way less than what they would have gotten provided the taxation was done properly.
Now the recent development is something that is still in talks and if this comes to fruition then I feel like it could be the start of the end as now the government of India is thinking about charging a flat 30 percent tax on Future and Options trading as they seem to have deemed this as a speculative asset and since majority of the public lose money on this. I just simply can't think of any other stupid reasoning than taxing something higher which is fundamental to our Economy just to safeguard people from losing money. I am pretty sure there were other options where you could have safeguarded investors but as usual the Governemnt of India chose the Tax Hammer. I just really hope that this new rule doesn’t actually come to fruition as that would definitely kill the whole Future and Option Trading Market.
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