LIVEIndia Keeps Stiff Taxes on Crypto as Interim-Budget Is Revealed in Election Year
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Expectations were low for a change in the stiff taxes on crypto transactions: a 30% tax on profits and a 1% TDS on all transactions.
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India has not introduced any changes to its controversial tax deducted at source (TDS) policy that is affecting the crypto industry.
The nation's finance minister Nirmala Sitharaman revealed the budget in parliament on Thursday as usual. Expectations were low for a change in the stiff taxes on crypto transactions, which include a 30% tax on profits and a 1% TDS on all transactions. However, there was a glimmer of hope because of efforts from the domestic crypto industry and a study from a think tank pushed hard for a reduction in the TDS.
India's crypto industry has urged the government to reduce the 1% TDS to 0.01% ever since it was first announced two years ago. Indian crypto exchanges have been in survival mode, trying to extend their runways in response to the 1% TDS.
Dilip Chenoy, the chairman of the Bharat Web3 Association, the policy body advocating for India's Web3 sector, said given this is an interim budget we didn't expect any big movement but "we are eagerly anticipating changes to be announced post-elections."
"High TDS and income tax rates continue to be hurdles which have caused both creators and consumers to move out of India," Chenoy said. "This migration has significantly affected the prospects of Web3 in India. We have and will continue highlight such concerns to key stakeholders.”
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