Nischal Shetty Criticizes India's Crypto Tax Structure

Nischal Shetty, founder of WazirX, recently shared his views on India's crypto tax structure in an interview with Coinpedia. Shetty highlighted the issue of 1% tax deducted at source (TDS), which he believes has had a negative impact on market liquidity.

According to Shetty, the current TDS rate compounds across every transaction for active traders, making serious trading on Indian platforms difficult. This, combined with the inability to offset losses, has pushed many active users away from local exchanges.

Shetty emphasized that tax reforms are necessary to attract and retain traders in India. He suggested reducing or removing the 1% TDS rate and allowing loss offsetting to improve market liquidity and promote a healthy trading environment.