On Thursday, Nirmala Sitharaman, India’s finance minister, unveiled the budget in parliament, upholding the contentious tax deducted at source (TDS) policy that affects the cryptocurrency industry.
Hopes for a revision in the strict taxes related to crypto transactions, including the 30% tax on profits and 1% TDS on all transactions, were not met. Despite the crypto industry’s domestic initiatives, a think tank’s push for a reduction in TDS, and IBF’s proposed suggestions, there were no adjustments to the existing policy.
During an election year, it’s customary for the finance ministry to present an interim budget, addressing short-term expenses, while a comprehensive budget is usually expected in July post-election results.
Rajagopal Menon, the vice president of the cryptocurrency exchange WazirX, said, “We expect these developments to factor in the government’s agenda along with our existing requests for a reduction in TDS rates to 0.01% and offset of losses for traders.”
For the past two years, the crypto industry in India has been urging the government to decrease the 1% TDS to 0.01%. The 1% TDS has prompted Indian crypto exchanges to navigate survival strategies, seeking to prolong their operations.
