IndiaTech.org, an organization representing the startup and internet-based businesses in India, has asked for the current crypto TDS rates to be brought down from 1% to 0.01%. The recommendation aims to create a suitable amendment to this effect in the next Union budget of India.
Virtual digital assets are now taxed heavily in India, attracting 30% capital gains tax (also applicable on losses with no carry forward), and a 1% TDS on crypto transactions. According to Rameesh Kailasam, CEO, IndiaTech.org, the TDS affects Indian business and moves crypto traders to foreign crypto exchanges and P2P channels.
As per a media report, IndiaTech.org considers the crypto tax clauses as ambiguous when it comes to foreign exchanges. The crypto taxes aren’t therefore conducive to creating a level playing field.
As per its website, IndiaTech.org “serves as a collaborative platform and voice for Indian consumer internet start-ups, unicorns and their investors to support positive business, conducive policy and regulations. IndiaTech.org since its inception has engaged with several Ministries and regulators to enhance ease of doing business, ensure easier access to primary markets and enable avenues for wealth creation for India.”
The founding members of the body include Ola and MakeMyTrip, and gold members include some of the major Indian crypto exchanges.
The organization has also released data on downloads of digital trading apps for overseas and Indian exchanges this year between July and September. The data shows a 350% increase in downloads of foreign crypto exchange apps as compared to the start of this year. In a four-month period beginning July, Indian crypto traders using peer-to-peer exchanges added a volume of Rs 80,000 crore to these foreign crypto exchanges.
IndiaTech.org considers tracking to be the main motive behind the TDS levy, and has thus asked for lowering the rate, so that Indian traders don’t visit peer-to-peer exchanges where data can’t be tracked.
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