According to Odaily Planet Daily, industry experts said that Indian Finance Minister Nirmala Sitharaman will announce the full budget for 2024-2025 on Tuesday, but the country is unlikely to change its controversial tax deduction (TDS) policy for crypto transactions.
Punit Agarwal, founder of cryptocurrency tax platform KoinX, said: “I don’t expect India to reduce the 1% TDS anytime soon, although it is necessary. The current tax rate leads to capital outflows to international exchanges and DEXs, which ultimately causes losses to the government.”
Rajat Mittal, the Supreme Court’s cryptocurrency tax counsel, said: “High TDS may drive retail investors to offshore exchanges, but the government’s focus on strict regulation suggests that a reduction in the tax rate is unlikely. In the digital asset space, the need for strong regulation is considered more important than allaying industry concerns.”