Local crypto businesses had hoped for a reduction in the 1% TDS to 0.01% to boost customer activity.
Indian Finance Minister Nirmala Sitharaman’s 2024 Union Budget speech on July 23 did not address cryptocurrencies, leaving the existing tax regulations unchanged.
Local crypto advocates had lobbied for a reduction of the current 1% tax deducted at source (TDS) to 0.01%, arguing that the high tax rate has stifled the growth of the Indian crypto industry.
However, the current crypto taxation rules in India were left unchanged in Tuesday’s budget presentation, the first since Prime Minister Narendra Modi began his third term in office.
Sathvik Vishwanath, CEO of local exchange Unocoin, said the decision to maintain the existing tax structure suggests that the government does not yet view crypto as a serious industry in India.
“[The government] compares [crypto] to gambling and betting,” Vishwanath
India’s current tax policy, introduced in Sitharaman’s 2022 Budget speech, includes a 30% flat tax on crypto profits and a 1% TDS on transactions.
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