• India investors will be subject to a 30% tax for profits from cryptos (including NFT sales) and mining rewards.
• The new tax system has two levels of taxation.
• LUNC 2.0 and LUNA 2.0 are traded at $5.39 and $0.00008555, respectively.

Early in May 2022, crypto investors lost billions of dollars following the collapse of LUNA 1.0 and USD (UST), Terraform Labs’ (TFL) respective native coin and algorithmic-stablecoin. TFL issued a new token called LUNA 2.0 to compensate them. However, Indians are not as fortunate.

Indian taxes are harsh on crypto transactions. Holders of LUNA 1.0/UST can pay up to 30% tax for tokens that they have redeemed from airdrop of LUNA2.0.

Crypto investors will be subject to a 30% tax, according to the new law. This includes NFTs and mining rewards.

Although the law didn’t mention how airdrops may be taxed, Jay Sayta, a technology and gaming lawyer, said airdrop distributions can be seen as income and are subject to the tax.

Sayta stated:

The law’s wordings are too vague to be able to be challenged by tax authorities.

Quagmire Consulting founder Anoush Bhhasin stated that Luna 2.0 airdrops could be included in the current definition of gifts, so the flat 30% tax might not apply.

The new tax system has two phases of taxation. The first is a flat 30% tax based on tokens’ value at time of credit. A flat 30% tax will be levied on incremental income if tokens are purchased, regardless of the way the tokens were categorized.

According to CoinMarketCap, Terra LUNA Classic LUNC (LUNC), and LUNA 2.0 are trading at $5.39 and $0.00008555, respectively as of the writing.

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