Indian crypto ecosystem players are increasingly calling for a reduction in tax deductions (TDS) at source for crypto transactions.
The 2022-23 Union Budget has approved 1% TDS for virtual digital assets. Industry representatives, arguing that this too high would drive traders away from the market and hurt volume, called for it to be lowered to the 0.01% to 0.05% range.
The Indian government is planning a stricter tax environment for crypto businesses, with media reports last week that the Indian tax authority is planning to put crypto activities under the GST sector of up to 28%, which is typically used for non-essential and extravagant goods. Activities such as betting, gambling and horse racing.