**Crypto Taxation in India Remains Unchanged Despite Industry Pleas**

India's Finance Minister Nirmala Sitharaman's 2024 Union Budget speech on July 23 did not address cryptocurrencies, leaving the current tax regulations intact. Local crypto advocates had pushed for a reduction in the 1% tax deducted at source (TDS) to 0.01%, blaming the high rate for the industry's poor performance.

- **Current Tax Regime**: Introduced in 2022, India imposes a 30% flat tax on crypto profits and a 1% TDS on transactions.

- **Industry Impact**: Trading volumes in Indian exchanges have plummeted by 97%, and active users have dropped by 81% since the tax measures were implemented.

- **Government Stance**: The unchanged tax rules suggest the government does not yet view crypto as a serious business. Sathvik Vishwanath, CEO of Unocoin, stated that the government compares crypto to gambling and betting.

- **Revenue Loss**: A report by the National Academy of Legal Studies and Research (NASLAR) found that the national treasury is losing approximately 59 billion Indian rupees ($700 million) in tax revenue due to reduced activity on exchanges. Reducing the TDS to 0.01% could potentially double earnings.

- **Regulatory Environment**: The Reserve Bank of India (RBI) has historically been critical of cryptocurrencies, warning of their speculative nature.

Despite these challenges, India remains a global leader in cryptocurrency adoption, topping Chainalysis' crypto adoption index in 2023. The local industry remains hopeful for future tax reductions.