New criticism of the Indian government's tax policy targeting the cryptocurrency market, particularly its capital gains tax and tax deducted at source system, has come from the industry.
At a fintech conference in Singapore yesterday, November 3, Binance CEO Changpeng Zhao asserted that increasing taxes on cryptocurrency profits could "kill the industry" in India.
All capital gains from cryptocurrency trades are now subject to a 30% capital gains tax levied by the Indian government. The government has, however, also imposed a 1% TDS on all cryptocurrency transactions.
Beginning in July 2022, these modifications took effect. Crypto exchanges in India have already felt the effects; Wazir X reported an 88% decrease in daily transactions from June to September. The Indian government, though, does not appear to be giving up.
By fLEXI tEAM