1️⃣: The main issue hindering crypto innovation in India is the existing tax system.
2️⃣: there is a 30% tax imposed on cryptocurrencies, which is considered high and discourages growth in the industry.
3️⃣: Additionally, a 1% TDS (Tax Deducted at Source) is applied to crypto transactions, further burdening crypto users.
4️⃣: Another problem is the absence of provisions for loss set off, meaning that individuals cannot offset their losses in cryptocurrency investments against their taxable income.
5️⃣: To address these challenges, there is a need for a fair and transparent crypto tax structure in India.
6️⃣: This includes implementing tax slabs that are more reasonable and proportionate to income earned from cryptocurrencies.
7️⃣: TDS should be reduced to a minimal percentage, such as 0.001%, to ease the tax burden on crypto transactions.
8️⃣: Finally, it is crucial to introduce provisions for loss set off, allowing individuals to offset their losses against their taxable income.