Overview

Click to expand overview
In the case of Terra, backer Terraform Labs used an airdrop to compensate investors and revive its project after the stablecoin collapsed, sending the value of sister token The law states that the “transfer” of what lawmakers termed “virtual digital assets” should be taxed at a flat rate of 30%. Tax officers are, the lawyer added, likely to see After losing millions to Terra’s crash, Indian investors who have recovered part of their losses through the LUNA 2.0 airdrop may have to pay taxes equivalent to 30% of the Crypto holders in India will be paying a 30% tax on Luna 2.0, the new crypto token of troubled Terraform Labs that was acquired through an airdrop, reported BeInCrypto. People who received the new coin known as Luna 2.0 in an “airdrop” and live in India suffer a double whammy because the country’s tax regime penalizes crypto investments, potentially Indian investors who receive the LUNA 2.0 token via the airdrop will face a 30% tax. They cannot offset losses from the original LUNA token against any new gains. Terra Indian investors who received the Luna 2.0 airdrop could face a 30% tax after the new crypto law came into effect on Ap

Luna 2.0 Airdrop: Indian Investors Face 30% Tax After Receiving Compensation

Indian investors who received the LUNA 2.0 token via the airdrop will face a 30% tax, potentially suffering a double whammy after the Terra (LUNA) crash. After losing millions to Terra’s crash, Indian investors who have recovered part of their losses through the LUNA 2.0 airdrop may have to pay taxes equivalent to 30% of the value received.

Understanding the 30% Crypto Tax in India

Crypto holders in India will be paying a 30% tax on Luna 2.0, the new crypto token of troubled Terraform Labs that was acquired through an airdrop, reported BeInCrypto. Terra Indian investors who received the Luna 2.0 airdrop could face a 30% tax after the new crypto law came into effect on April 1st.

The law states that the “transfer” of what lawmakers termed “virtual digital assets” should be taxed at a flat rate of 30%. This means that People who received the new coin known as Luna 2.0 in an “airdrop” and live in India are subject to this tax.

LUNA 2.0 Airdrop and Tax Implications

In the case of Terra, backer Terraform Labs used an airdrop to compensate investors and revive its project after the stablecoin collapsed, sending the value of sister token LUNA plummeting. However, despite the intention of compensation, the Indian tax laws treat the airdrop as a taxable event. Tax officers are, the lawyer added, likely to see the LUNA 2.0 airdrop as a “transfer” of assets.

No Offset for Previous LUNA Losses

Crucially, they cannot offset losses from the original LUNA token against any new gains from LUNA 2.0. This makes the tax burden even more significant for those who suffered substantial losses in the initial Terra collapse.

Top Sources

Related Articles