Indian crypto exchanges have recorded a drop in trading volume after the one percent TDS rule per transaction went into effect on July 1. Average daily trading volume on Indian exchanges WazirX, CoinDCX, BitBNS and Zebpay are reported to have dropped to $5.6 million (approximately Rs). 44 crore) for the past few days. Until June, this episode is around $10 million (about Rs 80). India still has a long way to go before its crypto community fully adapts to the announced tax laws surrounding the virtual digital asset (VDA) industry.
As of July 3, the trading volume above BitBNS and CoinDCX cryptocurrency exchange reported decreased by 37.4% and 90.9% respectively.
Indian crypto traders are Fight to see profit after payment Tax 30 percent about VDA transactions. This rule went into effect in April.
Now, starting this month, Indians have also started to get a one percent tax deduction on every crypto transaction. Essentially, this means that a percentage of TDS is being levied on every crypto asset purchase and deposit, thus increasing the pressure on investors.
Government of India believes that by imposing one percent tax withheld at source (TDS) on every crypto transaction, it will be easier to keep track of all transactions.
Not only on electronic moneya percentage of this TDS will also be calculated on transactions of other VDAs such as non-fungible token (NFT) and other reverse factors.
Despite that, the Indian crypto community has been time and time again complain about this additional financial pressure on social media.
Outcry is even greater after India predicts future plans to rise 28% Goods and services tax (GST) on cryptocurrency transactions began to make rounds in May.
India has two taxes on cryptocurrencies: 1% when you buy (according to KYC) + 30% on all returns.
They are also now looking at a 28% sales tax (known as the goods and services tax).
This is like banning cryptocurrencies without actually banning cryptocurrencies.
– ntkris (@ntkris) July 4, 2022
15% seems ok to me….in india they charge 1% per transaction and add 30% tax on cryptocurrencies.. they will add 28% tax which means total 59 % …. Wtf
– Ashish (@ Goloka_108) June 25, 2022
I am condemned @RBI and the Ministry of Finance @nsitharaman. You have completely stopped all crypto exchanges in India. Do not consider all the profit and loss of the trade. You just need to focus on how to gain money in the name of tax from traders without their profit. pic.twitter.com/DnM10tvLCt
– Crypto Analyst (@CryptoLearner03) July 1, 2022
1% TDS and 28% GST in crypto to get all the stock market investors back to that awful loss, which will leave them with no choice but to invest in cryptocurrencies. their host company. Cryptocurrencies are freedom from the 9-4 stock market, bonds and restrictions on your money. #CryptoTax #Crypto #India
– iMALIK (@thisisimalik) July 1, 2022
These tax rules were announced by Indian Finance Minister Nirmala Sitharaman in February 2022.
Earlier this year, the Indian authorities also speak that they do not seek to provide any tax relief or benefits to cryptocurrency miner and other industry players who have the ability to spend huge amounts of money to maintain and operate the crypto ecosystem.
These decisions are also being made be censured unfair as the high cost of the equipment required for cryptocurrency mining is likely to deter many from experimenting with this new type of digital asset.
India is still waiting for a more detailed regulatory framework governing the crypto sector, work being carried out under Sitharaman’s supervision.
Cryptocurrency is an unregulated digital currency that is not a legal tender and is subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any perceived recommendations, forecasts or any other information contained in the article.
