India keeps crypto tax rules unchanged – What does that mean?
India’s Crypto Tax Regime Remains Unchanged
India’s 2024 budget failed to offer any relief to the cryptocurrency industry, as the government maintained the existing tax structure for virtual digital assets (VDAs). This means that the controversial 30% flat tax on crypto gains and the 1% Tax Deducted at Source (TDS) on crypto transactions will remain in place.
Key points of India’s crypto tax regime:
- 30% flat tax: All profits from crypto transactions are subject to a 30% income tax, regardless of short-term or long-term holding periods.
- 1% TDS: A 1% TDS is levied on crypto transactions exceeding INR 50,000 in a financial year.
- No loss offset: Crypto losses cannot be offset against gains from other assets.
- Strict reporting: Investors must report crypto transactions under Schedule VDA in their income tax returns.
The crypto community had been advocating for a reduction in the TDS rate, arguing that it was hindering the growth of the Indian crypto market. However, the government’s decision to maintain the status quo has dampened investor sentiment.
The continuation of this stringent tax regime is likely to have implications for crypto adoption and investment in India.
Would you like to delve deeper into the potential impact of this decision on the Indian crypto market or explore other countries’ crypto tax policies?
