India Keeps Stiff Taxes on Crypto as Interim-Budget Is Revealed in Election Year.
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.
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
In general, this budget had lower expectations in terms of the financial sector as India is headed for general elections in the next two months. Sitharaman announced no changes in taxation - both direct and indirect.
In the election year, the finance ministry doesn't usually present a full budget but an interim one to fund its expenses for a short time. A full budget is usually expected in July after the results. Prime Minister Narendra Modi and his Bharatiya Janta Party are expected to return to power, according to polls.