India has decided to uphold its existing crypto tax regulations for the 2024/25 fiscal year despite ongoing appeals from industry leaders for a reduction in the current rates.
This regulation led to a significant decline in trade volumes in the Indian crypto industry. It then prompted industry representatives to advocate for a reduction in the TDS rate to 0.01% and the introduction of progressive taxation on gains. They also called for the ability to offset losses against gains for a more equitable tax system.to the 1% TDS rate or the flat 30% income tax on crypto earnings. Additionally, the long-term capital gains tax increased from 10% to 12.
The Reserve Bank of India has historically opposed cryptocurrencies. It banned financial institutions from servicing the crypto industry in 2018, a decision overturned by the Supreme Court in 2020.