- TDS will begin on July 1, a month after crypto taxes came into effect, April 1.
- Unocoin’s CEO and co-founder stated the new tax legislation is affecting the industry.
A capital gain tax of 30 percent on crypto transactions was applied to citizens of India after Parliament enacted a tax plan that caused an outcry within the country’s crypto community. In addition, there will be a 1 percent tax deducted at source (TDS) for Indians who purchase or sell crypto, and they will not be able to seek deductions for losses. TDS will begin on July 1, a month after crypto taxes came into effect, April 1.
According to data gathered by cryptocurrency research company Crebaco, the volume of crypto trading on India’s main exchanges had plummeted since April 1, when a new tax on crypto earnings was implemented.
Possible Impact of New Tax Rule
Data from CoinMarketCap and Nomics, a data company, compiled the trading volumes of four Indian exchanges. The data shows that WazirX-72 percent, ZebPay-59 percent, CoinDCX-52 percent, and BitBns-41 percent declined trading volume. U.S. dollars were used to measure the trade volumes. Unocoin CEO and co-founder Sathvik Vishwanath stated the new tax legislation is affecting the industry.
Crebaco CEO Sidharth Sogani said:
“April 1, 2, and 3 were holidays. Since then, volumes are continuing to fall. I don’t think this will return. This has created a new benchmark. It can go further down or sideways, but it is unlikely to go back up. It is clear that the new tax has impacted the market negatively. The government must look into this, and because there is no way to stop this (crypto), the government should embrace the technology.”