Prime

India’s <a href="https://news.todayq.com/27-finance-ministers-give-approval-to-eus-mica-regulation/" target="_blank" rel="noopener noreferrer nofollow">Finance Minister</a>, Nirmala Sitharaman, dashed hopes for changes in the controversial Tax Deducted at Source (TDS) policy affecting the country’s crypto industry. The budget is disclosed as the nation gears up for general elections. Revealing no alterations to the stiff taxes on crypto transactions, including a 30% tax on profits and a 1% TDS on all transactions.&nbsp; Crypto taxes revelation in India 
While expectations were tempered due to the impending elections, the crypto industry had anticipated a reduction in the 1% TDS. However, the budget, which is an interim one to fund short-term expenses during an election year, remained unchanged in terms of taxation, both direct and indirect.
India’s crypto sector has actively advocated for decreased TDS since its introduction two years ago. Despite efforts from the domestic <a href="https://news.todayq.com/hashkey-group-chair-reveals-these-crypto-industry-trends-for-2024/" target="_blank" rel="noopener noreferrer nofollow">crypto industry</a> and a study by a think tank pushing for a reduction, the government maintained the status quo. According to polls, Prime Minister Narendra Modi’s Bharatiya Janta Party is expected to return to power.
Rajagopal Menon, Vice President of the crypto exchange WazirX, stated the importance of integrating provisions for long-term financing of domestic crypto projects. Aligning with the government’s focus on digital public infrastructure and innovation. He expressed hope for the government to consider existing requests for a reduction in TDS rates to 0.01% and offset losses for traders. The aftermath 
The 1% TDS had prompted around five million crypto traders to shift their transactions offshore, resulting in an estimated loss of $420 million in government revenue since its introduction in July 2022, as per a study by the Esya Centre.
Despite the government’s steadfastness on the tax in the last two years, recent actions were taken against offshore crypto exchanges, prompting a return of crypto activity to Indian exchanges. The industry had been in survival mode, attempting to navigate the challenges posed by the 1% TDS.
Menon stated that the government should rethink the TDS rates and listen to the worries of the crypto community. It could bring positive changes to India’s crypto development. He pointed out the crucial juncture India finds itself in and how supporting long-term financing for domestic crypto projects aligns with the government’s larger agenda.&nbsp; The government’s decision to maintain the existing tax structure for the crypto sector aligns with its broader fiscal policy.
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No relief for Crypto in India, Interim Budget keeps 30% Tax, 1% TDS

Todayq News

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