India has introduced a new set of tax regulations for cryptocurrency transactions, which includes a 30% tax on profits from the sale of digital assets and a 1% tax deducted at source (TDS) on all crypto transactions above a certain threshold.
These regulations are part of India’s broader effort to bring clarity and oversight to the rapidly growing crypto market in the country.
The introduction of the TDS has raised concerns among traders and exchanges, as it could impact liquidity and trading volumes.
Despite these concerns, the Indian government is pressing ahead with its plans, arguing that the new rules are necessary to ensure that crypto profits are properly taxed and to prevent money laundering and other illicit activities. The regulations have sparked a debate about the future of cryptocurrency in India, with some advocating for more lenient policies to foster innovation, while others support strict oversight to protect investors.
