Prime

Million

A recent study paper has revealed that the Indian government stands to gain over $615 million, only by removing a clause of 1% TDS (tax deducted at source) from every transaction on VDAs (virtual digital assets) in India.&nbsp; 
India currently has one of the most stringent taxation policies on crypto assets in the world, with a 30% tax on any capital gains and 1%TDS on every transaction. With incumbent Prime Minister <a href="https://www.cryptotimes.io/2024/06/05/modi-fractured-mandate-what-to-expect-for-crypto-and-web3-in-india/" target="_blank" rel="noreferrer noopener">Narendra Modi continuing his third term</a>, many pro-crypto Indians are hopeful of liberal crypto regulations in the upcoming budget of 2025-26. 
The research paper, conducted by India’s premier law institute NALSAR Hyderabad in association with crypto enthusiasts, claims that stringent taxation policies on cryptocurrencies by the government has resulted in loss of revenue for the exchequer and are potential deterrent for many crypto enthusiasts in the country. The research data includes statistics from the top six crypto exchanges in India from February 2022 to January 2024.&nbsp; 
The paper has four key findings where they claim that the Indian exchequer faced a loss of up to $300 million in a span of two years(February 2022 to January 2024) and it is further expected to lose $615 million in revenue due to 1% TDS. The research also claims that the TDS policy has led to significant losses on the Indian exchanges and led to an exodus of Indian crypto lovers to offshore exchanges, beyond the jurisdiction of the Indian government.&nbsp; 
The report also claimed that if the TDS is reduced from 1% to 0.01% then the tax revenue could be doubled for the next financial year. The report also points to an alarming 81% drop in active users in 2023 alone, suggesting that many investors are now turning to foreign exchanges to avoid the high tax burdens and strict monitoring imposed domestically. 
Moreover, the report states that easing the TDS requirement could reduce administrative burdens, enhance investor confidence, and foster much-needed innovation within the burgeoning crypto market. 
The paper is seen as a lobbying move by the crypto community in India demanding relaxation in crypto taxation. 
India’s cautious response to crypto&nbsp; 
In response to steady calls for reforms, the Indian finance ministry has maintained a cautious stance, refraining from indicating any immediate plans to revise existing tax policies. Amidst speculation and lingering uncertainties, Indian <a href="https://www.cryptotimes.io/2024/06/11/would-nirmala-find-love-for-crypto-in-her-2nd-term/" target="_blank" rel="noreferrer noopener">Finance Minister Nirmala Sitharaman</a> has reiterated her stance that cryptocurrencies will be treated as assets rather than legal tender, a position aimed at maintaining market stability. 
This reluctance leaves the industry in a state of uncertainty, with stakeholders emphasizing that reducing these taxes could not only stimulate growth but also align India’s crypto policies more closely with global standards. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/06/14/indian-court-says-crypto-dealing-not-illegal/" target="_blank" rel="noreferrer noopener">Indian Court Says Crypto Dealing is Not Illegal</a> 
</blockquote>

Indian Government can earn over $615 Million in Revenue by removing 1% Tax on Crypto: Study

The Crypto Times

دیگر آرٹیکلز 24 جون، 2024 پر پبلش کیے گئے ہیں

'Dogecoin Killer' Shiba Inu Falters — Here Is What These Key Indicators Reveal About Its Short-Te...

Metaplanet Expands Bitcoin Holdings: 1 Billion Yen Investment in Bitcoin Amid Yen Volatility

Dogwifhat (WIF) Falls Out Of Top 50, Tumbles 38% Over Past 7 Days

Galileo Protocol Enhances Security with NexeraID Partnership

Milady Meme Coin and JASMY hits support as open interest drops

Crypto on the Campaign Trail: Bitcoin and Blockchain Shapes the 2024 Presidential Race

Join our free newsletter for daily crypto updates!