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.