According to Odaily, industry experts have indicated that India's Finance Minister Nirmala Sitharaman is set to announce the full budget for 2024-2025 on Tuesday. However, it is unlikely that the country will alter its controversial tax deduction at source (TDS) policy on cryptocurrency transactions. Punit Agarwal, founder of the cryptocurrency tax platform KoinX, stated, 'I do not expect India to reduce the 1% TDS in the short term, even though it is necessary. The current tax rate is causing capital to flow to international exchanges and decentralized exchanges (DEX), ultimately resulting in losses for the government.'
Supreme Court cryptocurrency tax advisor Rajat Mittal added, 'The high TDS may push retail investors towards offshore exchanges, but the government's focus on strict regulation suggests that a reduction in the tax rate is unlikely. In the digital asset sector, strong regulation is considered more important than alleviating industry concerns.'