India is reassessing its crypto regulations, prompted by global shifts in policy. While this reconsideration may delay the discussion paper on digital assets, budget proposals indicate no relief for crypto traders. Finance Minister Nirmala Sitharaman has proposed amendments that would subject undisclosed crypto gains to retrospective audits and hefty penalties. The current tax on crypto gains remains unchanged, with no exemptions or variations based on holding periods. Additionally, a 1% Tax Deducted at Source (TDS) persists on all crypto transactions, making trading costly in India. Industry leaders express mixed feelings about the budget; although they welcome discussions on a revised crypto policy, the ongoing tax burdens are disheartening. The crypto community is now looking forward to anticipated changes in the Income Tax Act expected next week, hoping for favorable adjustments.

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