On July 1, the Government of India introduced a 1% tax deductible at source (TDS) on every cryptocurrency trade over INR 10,000, or about $127. The law was only enforced a few days ago, but there has already been a chilling effect on the Indian digital asset markets.
The tax is in addition to 30% tax On all crypto-based incomes that started on April 1, double India’s 15% capital gains tax on short-term gains for traditional stocks and shares.
Increased taxes can act as an additional barrier for citizens looking to trade cryptocurrencies with diminishing potential for financial gain.
