India Maintains Controversial Crypto Tax Policy in Latest Budget

According to CoinDesk, India's finance minister Nirmala Sitharaman has not introduced any changes to the country's controversial tax deducted at source (TDS) policy affecting the crypto industry. The budget was revealed in parliament on Thursday, with low expectations for changes to the stiff taxes on crypto transactions, including a 30% tax on profits and a 1% TDS on all transactions. Despite efforts from the domestic crypto industry and a study from a think tank pushing for a reduction in the TDS, no changes were announced. In general, this budget had lower expectations for the financial sector as India is headed for general elections in the next two months. Sitharaman announced no changes in taxation, both direct and indirect. A full budget is usually expected in July after the election results. India's crypto industry has urged the government to reduce the 1% TDS to 0.01% since it was first announced two years ago. Indian crypto exchanges have been in survival mode, trying to extend their runways in response to the 1% TDS. The tax prompted as many as five million crypto traders to move their transactions offshore, costing the government a potential $420 million in revenue since it was introduced in July 2022, according to a study by the Esya Centre. While the government hasn't reduced the tax in the past two years, last month it took action against offshore crypto exchanges, which in turn brought crypto activity back to Indian exchanges.