India’s Crypto Industry Seeks Tax Relief Amid Offshore Trading Surge
- Approximately three-quarters of Indian crypto volume, around $6.1 billion (₹51,252 crore), is conducted on foreign platforms.
- The current tax framework includes a flat 30% tax on crypto income and a 1% TDS on transactions, with no deductions for losses.
- A survey by CoinSwitch indicates that over 80% of participants seek changes in the upcoming Union Budget.
- Finance Minister Nirmala Sitharaman will present her ninth consecutive budget amid calls for regulatory clarity and tax rationalization.
- Industry leaders advocate for reduced TDS rates and loss set-offs to improve liquidity and bring trading back to domestic platforms.
India’s crypto industry is urging policymakers to reconsider the current tax regime that has driven significant trading activity offshore, leading to concerns about lost revenue and weakened oversight. With Finance Minister Nirmala Sitharaman set to present the Union Budget, stakeholders are hopeful for reforms that could enhance domestic market competitiveness.
The call for change stems from dissatisfaction with high taxes and lack of regulatory clarity, as highlighted by CoinSwitch’s survey showing widespread demand for policy adjustments in the upcoming budget presentation. (Source)
