OPINION | Budget 2024 Crypto Expectations: Nirmala Sitharaman Should Reconsider 1% TDS & Loss Offset Rules

After the taxation was implemented in 2022, approximately 3-5 million Indian crypto users had migrated to offshore platforms, driven primarily by the desire to circumvent the stringent TDS regime.

Moving forward, addressing the critical challenges faced by India's crypto market necessitates a nuanced strategy that addresses key concerns and promotes sustainable growth. ( Image Source :Ewan Kennedy/Unsplash )

In 2022, India made big changes to how it taxes cryptocurrency. A 1 per cent Tax Deducted at Source (TDS) and a 30 per cent Capital Gains Tax on crypto assets were implemented with the intention to enhance oversight and protect investors from potential frauds. However, the impact of these measures unfolded in unexpected ways. As we look ahead, the formation of a new government holds the potential to address critical issues facing crypto investors and stakeholders, paving the way for a more