Hey Friends..
There’s been a lot of buzz lately in the Indian crypto world—and if you’ve been following the news, you’ve probably heard something exciting (and maybe confusing) about a possible cut in crypto taxes.
So let’s break it all down in simple words.
What’s Everyone Talking About?
- Recently, a wave of news started spreading about the removal of the 30% tax on crypto profits and the 1% TDS (Tax Deducted at Source) on every crypto transaction in India.
- The crypto community lit up with hope! People started sharing posts and videos. Platforms began discussing it. But hold on—before we get too excited, let’s check the facts.
Why This Matters So Much
Since 2022, the Indian government has been taxing crypto gains at a flat 30%, and also taking 1% TDS on every transaction.
What happened because of that?
- Trading volumes dropped by over 90% 😬
- Many users moved to foreign exchanges
- Some even stopped trading altogether
So yeah, these taxes hit the Indian crypto space hard. That's why the idea of cutting them is such a big deal.
Is the Tax Cut Confirmed?
Here’s the truth: There’s no official announcement yet. 😕
The news first appeared in an article by the Financial Times (which is behind a paywall), but it has been picked up by several trusted sources.
So while it’s not official, it’s not just a random rumor either. There’s enough talk to take it seriously.
What’s Happening Behind the Scenes?
Here’s the good news:
- Indian crypto founders are now in regular talks with the government—monthly, even weekly!
- These meetings are focused on one thing: reducing crypto taxes and removing the 1% TDS.The founder of CoinSwitch (a big Indian crypto platform) said they’ve been pushing for this consistently.
- This is a huge shift. Just a year or two ago, such conversations barely happened.
RBI’s New Approach
- Even the Reserve Bank of India (RBI)—which used to be pretty harsh on crypto—is now taking a softer tone.
- They recently said they’re waiting for the right policymakers to decide on crypto rules. In other words, they’re not totally against it anymore.
- That’s a big deal.
Is the World Watching?
- Absolutely. Countries around the world are changing their crypto rules. Even Donald Trump (yes, that Donald Trump) is now openly supporting crypto in the U.S.
- Moves like that might be influencing India, making our government rethink its tough stance.
What Happens If India Changes Its Crypto Tax Rules?
- If this actually goes through, here’s what could happen:
- More people will start trading again
- Startups and crypto exchanges might grow
- Indian talent and businesses will stay in the country instead of moving abroad
- And guess what? The government can still earn a reasonable amount of tax—say, 15% instead of 30%
It could be a win-win for everyone!
Final Thoughts
So, here’s the bottom line:
- No official tax cut yet, but
- Serious conversations are happening
- RBI seems more open-minded, and
- The mood in the crypto space is hopeful
If the government does go ahead and lower the taxes or remove the TDS, it could breathe new life into the Indian crypto scene.