India’s Crypto Crunch: Former MP Urges Tax Cuts and Clearer Rules for Web3 Growth

India’s cryptocurrency sector faces mounting challenges as high taxes and regulatory ambiguity stifle innovation. Former MP Ritesh Panday has renewed calls for the government to slash the 30% capital gains tax on crypto profits and eliminate the 1% transaction levy. The current framework imposes multiple layers of taxation, including a 1% TDS at each stage of NFT purchases – from crypto acquisition to wallet transfers and final settlement.

Pandey warns such over-regulation creates bureaucratic hurdles that could derail India’s Web3 potential. The nation boasts a vibrant ecosystem of blockchain startups and unicorns, but punitive fiscal policies threaten to choke this youth-driven industry before maturation. Despite lacking formal crypto legislation, India maintains one of the world’s most aggressive tax regimes for digital assets.