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coinpedia 2025-05-27 04:22:20

Crypto Tax in India May Be Reduced as Exchanges Demand Relief

The post Crypto Tax in India May Be Reduced as Exchanges Demand Relief appeared first on Coinpedia Fintech News Bitcoin is pushing toward a breakout at $112K while Ethereum stays steady after the Pectra upgrade. Trump Media’s massive $3B crypto play turns heads, and India stirs the pot with calls for tax reform. Meanwhile, BNB, ADA, and XRP take a slight breather. While the whole crypto market is swelling with optimism. India’s crypto industry is also starting to feel more hopeful. Once seen as a risky and unwanted sector, the space is now witnessing a slow but steady change in how the government approaches it. And interestingly, this shift is partly being fueled by Donald Trump’s return to the White House and his pro-crypto stance, which appears to be influencing New Delhi’s thinking. More Talks, Bigger Demands According to the Financial Times , industry leaders say they’re now meeting policymakers every few weeks, a big jump from earlier days when conversations happened only twice a year. One of the top demands is the Tax relief. India currently charges a 30% capital gains tax and a 1% transaction tax on crypto trades. Exchanges like CoinSwitch believe these harsh taxes are hurting the local market and pushing users to offshore platforms. Ashish Singhal of CoinSwitch argues that even a smaller 0.1% tax could still help the government track transactions without scaring traders away. A study by the Esya Centre backs this, showing that over 90% of Indian crypto trading has already moved abroad due to the current tax regime. Coinbase, Binance Make a Comeback Global players are taking notice too. Binance and Coinbase, which had earlier exited India, are now coming back. Coinbase recently secured a key regulatory nod and sees Trump’s crypto-friendly approach as boosting momentum worldwide. Tom Duff Gordon from Coinbase said India seems to realize that banning crypto isn’t realistic anymore, and that bringing activity onshore through better rules could actually grow the tax base. RBI’s Tone Softens, But Doubts Remain The Reserve Bank of India has long been crypto’s biggest critic, even calling it a Ponzi scheme in the past. But now, the tone is less aggressive. Officials are waiting for the government’s updated crypto policy paper. While full regulation may take a few more years, the mood is clearly changing. Many still think crypto is illegal in India, but younger investors are leading the shift. And with global support rising, India might not want to be left behind. How Much is Crypto tax in India? India imposes a 30% capital gains tax on crypto profits and a 1% TDS (Tax Deducted at Source) on every crypto transaction. Is crypto legal in India? Crypto is not illegal, but it’s also not fully regulated. There’s no formal recognition or licensing framework yet, though it is taxed and monitored. Will India really reduce the crypto tax to 0.1%? It’s not confirmed yet, but industry leaders are strongly pushing for it. The current 1% TDS and 30% capital gains tax have driven most users to offshore platforms. A 0.1% transaction tax is being proposed to retain traders while allowing the government to track activity.

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