The crypto industry has requested the government to decrease the TDS on payments for earnings originating from cryptocurrency trading to 0.01 or 0.05 percent, rather than the proposed 1%, claiming that it would harm regular traders. Sumit Gupta, CEO and Co-Founder of CoinDCX, believes that a 30% tax on cryptocurrency income is excessive and should be decreased.
"At the industry level, we are engaged with the government and have provided a presentation outlining how a 30% tax and a 1% TDS is damaging to the business's growth. It will lock up capital for traders and drain market liquidity. Retail investors will suffer if liquidity is not available," Gupta told reporters.
Meanwhile, he stated that CoinDCX is working with its traders to comply with the new tax regulations. "We will attempt to make it as simple as possible on our end, but we will continue to engage and maintain communication with the government, requesting that TDS (tax deducted at source) be reduced to 0.01 or 0.05 percent." The 30% income tax rate is likewise excessive, and we are demanding that it be reduced," Gupta added. The levy of income tax on crypto assets was clarified in the 2022-23 Budget.
On April 1, a 30 percent income tax, plus cess and surcharges, will be imposed on such transactions as horse racing winnings or other speculative transactions.
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