Indian Crypto Industry Seeks Tax Relief Amidst Regulatory Review

The Indian crypto industry is facing significant challenges due to the country's tax regime, which has led to a substantial portion of trading moving overseas.

According to industry estimates, over 72% of crypto trading in India has shifted abroad in the current fiscal year, primarily driven by high taxes and the flexibility offered by foreign exchanges.

The Indian government is currently reviewing its regulations on virtual digital assets (VDAs), and the Parliamentary Standing Committee on Finance recently met with leading crypto exchanges to discuss key issues such as taxation, regulatory clarity, investor protection, and capital outflows.

During the meeting, industry executives emphasized the need for a reduction in the tax deducted at source (TDS) rate from 1% to 0.1%, stating that this would help improve domestic liquidity and boost trading on Indian platforms.