How can anyone deposit funds into Heru Finance?
Currently we facilitate 2 ways in which investors can deposit
funds into Heru Finance
-
Direct Cryptocurrency – You can deposit stablecoins using
any of the recognized crypto wallet.
-
IMPS Transfer – You can deposit funds through bank
transfer using IMPS. Please note that it may take few hours
for your transaction to undertake and funds to reflect in
your account.
-
To speed up the process, we recommend directly investing
in any strategy through IMPS and filling up the necessary
details at the time of investing.
Is Cryptocurrency legal in India?
With more than 10 million active Bitcoin investor in India, Bitcoin
and crypto transactions are unquestionably legal. Anyone can
purchase, sell, or exchange cryptocurrencies under current
legislation. They are, however, unregulated, as the Indian
Government is still drafting a framework regarding regulations
of cryptocurrencies, and as of now, there is no regulatory system
in place for digital currencies.
Heru Finance is incorporated in Wyoming USA. We strictly
adhere to all the normal set by different governments. All users
must necessarily complete the KYC process before they can
deposit or withdraw funds or cryptocurrency.
What is the RBI Stand on Cryptocurrency in India?
The Reserve Bank of India (RBI) recently issued an important
clarification on cryptocurrencies stating that banks cannot use
the April 2018 circular of the RBI to warn their consumers
against cryptocurrency trading. This clarification comes after
institutions such as the State Bank of India, and HDFC Bank
issued warnings to their customers about dealing in virtual
currencies, citing the RBI’s April 2018 regulation. Although the
Supreme Court eventually overturned this ruling in 2020, it
appeared that some of these banks were informing consumers
that failing to follow this guideline might result in their cards
being canceled or suspended. This clarification gives relief to the
people who invested in cryptocurrencies and is also hopeful for
millions across the country who are awaiting the final decision on
cryptocurrency regulation in India.
What is the TDS on crypto assets?
According to the revised Income Tax Regulations, the 1% TDS is
applicable on all sell transactions of the crypto assets. This will
be effective for 1 July, 2022. However, please note that the TDS
will be deducted on the final sale amount and not just on the
profits. For TDS, it doesn’t matter if you earn a profit or book a
loss on your trade. It will be deducted, no matter what.
When do you have to pay 30% tax on crypto?
The entire 30% tax on any crypto assets will be deducted from
the profits earned via various crypto tokens in an entire financial
year. The starting of this 30% tax will be from the Assessment of
the FY 2023-24.
Can we avoid 30% crypto tax in India?
No, The tax measures announced by the Government on crypto
are comprehensive, and it is unlawful to evade taxes. Crypto
exchanges have been working towards an environment that
follows the government and all trades, and investments
happening within the domain have records that will be visible to
the tax department.
Can I receive crypto in form of gift from someone?
Any gifts made in the form of virtual assets will also be taxed and
the recipient of the gift is liable to pay income tax at a flat rate of
30% (plus surcharge and cess). This is applicable to people
gifting virtual assets such as cryptos or NFTs to friends and
family in India.
Does Heru Finance is in compliant with FEMA norms?
The main objective for which FEMA was introduced in India was
to facilitate external trade and payments. In addition to this,
FEMA was also formulated to assist the orderly development and
maintenance of the Indian forex market. The applicability of
FEMA is extended to:
- Foreign exchange.
- Foreign security.
- Exportation of any commodity and/or service from India to a
country outside India.
- Importation of any commodity and/or services from outside
India.
But when a user invests through Heru finance, FEMA is not
applicable on those transactions, why?
First of all the RBI also clarifies that it does not classify
cryptocurrency as currency under FEMA. Therefore, the crypto
currencies do not fall under the purview of the term 'currency'
under FEMA as; it is not included under the definition of
currency under the Sec 2(h) of the FEMA and not notified by the
RBI as a currency. Therefore the cryptocurrency is neither
foreign currency nor foreign exchange under the FEMA.
Secondly, as Heru finance has a pool of stable coins and other
crypto tokens which has been bought from a token provider who
has an Indian bank account so the payment for those stable coins
and crypto tokens is done by an Indian bank account to an Indian
bank furthermore, when a user wants to invest in one of the
baskets offered by Heru they are given an option either submit
their stable coins or crypto tokens to the digital wallet connected
to Heru finance or buy crypto tokens for which Indian bank
details are provided to the users through which he/she can do
IMPS transaction to an Indian bank account and the crypto can
be realized from the pool of funds to the users account with
Heru, all in all, this shows that money has not crossed the
borders of India hence FEMA is not applicable on these
transactions.