Sumit Gupta the co-founder and CEO of CoinDCX, an Indian crypto exchange, has now advocated for lowering of taxes on crypto earnings, levied by the Indian government. Cryptocurrencies are unregulated and unrecognized in India but the government charges 30% on capital gains and 1% additional TDS.
Gupta took to his X account on Thursday to announce a social media campaign of crypto users in India demanding a “more favourable taxation and policies for Web3 in India.”
Gupta also highlighted the risk of losing ₹17,700 crores in TDS over the next five years due to high taxation rates. Since the implementation of TDS in July 2022, Indians have traded over ₹500,000 crores on offshore crypto platforms. According to him, a recent report by Esyacentre indicates that India has lost ₹6,000 crores in tax revenue by pushing crypto investors toward foreign countries.
He further stated that the CoinDCX policy team and Bharat Web3 Association, of which CoinDCX is a founding member, have been in contact with various political leaders for years and have been requesting them for friendlier policies for the Web3 ecosystem.
He added, “We now need your help!” As per reports, India’s Union Budget is going to be announced on 1st February 2025.
Taxpayers, Investors and Businesses are actively waiting for any new reforms to it, And as the Indian government is currently inviting citizens to share their ideas for the Union Budget 2025-2026. He has asked the X’s users who are Crypto enthusiasts to help the ecosystem by requesting better taxation and policies surrounding Web3.
He further said, “Let’s make India a global superpower in Web3 together.”
In the end, he has highlighted three requests to X audience that one can make on the government page to strengthen the Indian Web3 Ecosystem. He has asked the X audience to request the Indian government to Reduce the crypto tax rate to 0.01%.
Further to request for amends to Sections 194S and 115BBH of the Income Tax Act to ensure that offshore platforms comply with local tax laws, regardless of their physical presence in India. A last request the government to allow taxpayers to offset losses from Virtual Digital Asset (VDA) transactions against gains from other VDA trades.
Recently, Indian parliamentarian Raghav Chadha from the Aam Aadmi Party (AAP) responded to a crypto influencer on his X handle, saying that he will ask the Indian parliament against the existing 30% tax against any capital gains on crypto plus 1% tax deducted at source. The user has demanded his intervention against high taxation on cryptocurrencies by the Indian government.
Also Read: India’s crypto future will depend on global cooperation: Gov
