According to WazirX CEO, India’s crypto tax would result in government loses
India’s proposed 1% tax deducted at source (TDS) on all crypto transactions would result in massive losses for the government, according to Nischal Shetty, founder of Indian crypto exchange WazirX.
Shetty stated that although imposing a 1% TDS on bitcoin transactions would generate more money, the real profit will be far smaller owing to increased yearly tax returns.
He pushes for a 0.1 percent TDS, which, according to Shetty’s estimates, would increase government revenue by reducing tax refunds and alleviating the burden on dealers.
In February, the Indian government imposed a 30% tax on cryptocurrency profits and a 1% TDS on all transactions.
Nirmala Sitharaman, the finance minister, said on Tuesday that many Indians see a future in cryptocurrencies and that the government sees revenue prospects in the asset class.
However, Shetty’s math flips the narrative and indicates that the government is losing tax money. “With little little to repay, traders are not adversely impacted; they may continue trading and earn further gains.” “More earnings equals more revenue for the government,” he said.