Despite all the calls from the industry, India passed crypto tax laws, according to which Indians will pay a 30% tax on profits from cryptocurrency transactions starting from April 1. Moreover, apart from already high tax, traders will have to pay 1% tax deducted at source (TDS), while the law doesn't enable offset losses with gains. TDS will take effect on July 1.
Related: India's New Crypto Rules Presents Strict Trading Limitations
India's Minister of Finance Nirmala Sitharaman proposed to impose a 30% crypto tax in February. Although many Parliament members talked against the bill, saying it will be the end of the crypto space, the bill got approved.
Nirmala Sitharaman said consultations are going on to whether they want to regulate crypto or ban it in total. According to her, crypto is taxed as people can make a profit from it.
Nischal Shetty, the Chief Executive Officer of the Indian crypto trading platform WazirX, said on Twitter that countries on the globe are welcoming crypto entrepreneurs. On the other hand, the Indian Government has to compete and ensure it can retain the homegrown talent. Shetty said crypto entrepreneurs may leave because of the rules and India would lose Web 3.
While "reduce crypto tax" is trending on Twitter, the government seems not to have doubts about it.