India has kept its restrictive crypto tax rules unchanged in 2023. In fact, Finance Minister Nirmala Sitharaman did not mention crypto, virtual digital assets or central bank digital currencies or the digital rupee while unveiling the nation’s budget which indicates the latest tax rules.
Last year, the world‘s largest democracy instituted stiff taxes on crypto transactions: a 30 tax on profits and a 1 tax deducted at source (TDS) on all transactions. Predictions from the industry that the year would be a "period of pain" ostensibly came true.
Crypto trading volumes plummeted almost immediately, Indians moved more than $3.8 billion in trading volume from local to international crypto exchanges in the nine months after the announcement and interest in crypto nosedived.
Several individuals closely working in the crypto regulatory space had publicly said they were hopeful for a tax cut but privately opined that it was unlikely, CoinDesk had reported earlier this week.
The primary demand from the industry and recommendation from policy think tanks was to reduce the TDS to 0.01, or at minimum to 0.1.
India has kept a crypto bill in cold storage since early last year saying crypto regulation cannot succeed without global coordination – something its prioritized with its agenda setting power of holding the G-20 presidency.
