India’s crypto industry leaders are urging the government to revise the 30% tax and 1% TDS on crypto assets ahead of the Budget 2026 due to offshore trading shifts.
Such changes are essential as current regulations diminish domestic trading volume, affecting liquidity and innovation, prompting industry stakeholders to seek taxation relief for revitalizing the local crypto market.
India’s crypto industry is advocating for tax policy changes as traders move offshore. The current regime includes a 30% tax and 1% TDS.
Key figures like Nischal Shetty and SB Seker call for policy reforms. The suggested changes aim to restore onshore trading participation.
Expected Domestic Boost from Proposed Tax Reforms
The proposed changes may halt the offshore shift and invigorate domestic trading. Industry leaders are optimistic about potential policy adjustments.
Potential outcomes include better domestic market liquidity and compliance ease. Historical trends indicate a lower TDS might reduce compliance costs.
Past Failures to Adjust Crypto Taxes Effectively
Previous attempts to amend crypto taxes, like in Budget 2022, resulted in heightened compliance burdens. Offshore migration persisted without relief.
Experts highlight the need for tax structure adjustments to foster growth. Data-driven insights suggest potential boosts to local trading activities. Nischal Shetty, Founder of WazirX, stated, “The 1% TDS has curtailed participation” – Economic Times
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