- CoinDCX CEO, Sumit Gupta, lobbies for a massive reduction in TDS from 1% to 0.01%.
- Last year’s imposition of the 1% TDS led to a plummet in trading volumes at crypto exchanges.
- Hope for a friendlier crypto tax regime in India, but possibly two years away.
India’s cryptocurrency industry has been under considerable strain since the introduction of the 1% Tax Deducted at Source (TDS) on crypto transactions. This levy, while aimed at streamlining the rapidly growing sector, inadvertently crippled trading volumes. Notably, market makers and high-frequency investors, integral cogs in the trading machinery, scaled back their operations, citing escalated costs.
Responding to the downturn and voicing the concerns of many, CoinDCX’s CEO, Sumit Gupta, has taken a proactive stance. Gupta revealed that CoinDCX is ardently lobbying with the Indian government for a dramatic cut in the TDS — from the current 1% to a more manageable 0.01%. Such a move, he believes, would significantly ease the burden on investors and stimulate trading activities.
CoinDCX CEO Sumit Gupta said that the company is lobbying India’s government to cut the TDS from 1% to 0.01%. A shift by India to a less onerous crypto tax regime may be two years away.
Indian officials last year imposed a 1% levy — known as TDS — on crypto transactions,…— Wu Blockchain (@WuBlockchain) September 25, 2023
However, even as dialogues continue and the crypto community remains hopeful, a transition to a more lenient crypto tax regime might be on a slightly elongated timeline. Gupta anticipates that it could be another two years before the industry witnesses such a change.
For India’s crypto enthusiasts, this represents a waiting game. But with stalwarts like Gupta championing their cause, there is a glimmer of hope that the market will eventually rebound, buoyed by supportive regulatory measures.
