India Maintains Crypto Tax Limits in 2023 Budget

India has kept its restrictive crypto tax rules unchanged in the 2023 budget.

The Finance Minister did not mention cryptocurrency, virtual digital assets, blockchain, or central bank digital currencies in the budget, indicating that the current tax rules remain in place.

Last year, India instituted a 30% tax on profits and a 1% tax deducted at source (TDS) on all crypto transactions, causing a drop in crypto trading volumes and a shift of $3.8 billion in trading volume from local to international exchanges.

The crypto industry and policy think tanks had recommended reducing the TDS to 0.01% or at least 0.1%, but no changes were made in the 2023 budget.

Indian crypto companies are hoping the government will reconsider its stance on crypto taxes. The crypto bill has been in cold storage since early last year as the government prioritizes global coordination.