Indian crypto platforms push for tax rethink ahead of February budget
Industry leaders say transaction-level taxes and loss restrictions are draining liquidity as India tightens crypto compliance and enforcement.
India’s crypto industry is renewing calls for tax reform ahead of the country’s February Union Budget, arguing that the current framework is discouraging onshore activity as regulatory compliance requirements continue to tighten.
India’s current crypto tax framework, introduced in 2022, levies a flat 30% tax on crypto gains and applies a 1% tax deducted at source (TDS) on most transactions, whether they are profitable or not. At the moment, losses from trades can’t be used to offset gains.
Executives from major domestic exchanges say the existing tax regime, particularly transaction-level taxes and restrictions on loss setoffs, no longer reflects how the global digital asset market has evolved, nor India’s own progress in strengthening oversight and enforcement.