These include rules like 1% TDS (tax deducted at source) on crypto transactions and restrictions on offsetting losses against profits. Due to these strict policies, many investors are turning to foreign exchanges, making it difficult for the government to track transactions.
The main demands of crypto industry leaders include reducing TDS from 1% to 0.01%, reducing the 30% tax on virtual digital assets (VDA) and allowing offset of losses.
Experts say that these reforms will not only encourage crypto transactions, but will also prevent investors from looking for foreign options.
Avinash Shekhar, co-founder and CEO of Pi42, said, “To promote the crypto industry, it is very important to reduce TDS to 0.01%, reduce tax to 30% and make provision for compensation of losses.
The crypto market made major achievements in 2024, with Bitcoin crossing $100K and a surge in institutional investment. In this backdrop, India should align its crypto industry with global standards.
Industry experts believe that a balanced and progressive rule will promote transparency and investor protection. According to Raj Karkara, COO of Zebpay, “Recognizing crypto as a formal asset class and providing clear classification would be beneficial for the industry.”
Union Budget 2025 could be an important opportunity for the crypto industry to drive reforms that will enable India to lead the global digital economy.
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