A New Delhi-based technology think tank has proposed that India’s controversial 1% tax deduction at source (TDS) cryptocurrency tax policy needs to be reduced to 0.01%, based on a new study.
India imposed a 30% tax on cryptocurrency profits and a 1% TDS on all transactions in July 2022, causing a sharp drop in traffic and sending exchanges into survival mode.
The tax, a form of income tax known as TDS, has prompted as many as 5 million cryptocurrency traders to move their transactions overseas, according to the tax department.
Since its introduction in July 2022, the tax has cost the government $420 million in potential revenue.