India’s Crypto Tax Trouble Leads to Calls for Cuts and Clear Rules

India’s cryptocurrency community faces mounting challenges as high taxes and regulatory ambiguity stifle innovation. Former MP Ritesh Pandey has renewed calls for the government to slash the 30% capital gains tax and eliminate the 1% transaction levy (TDS), warning that over-regulation threatens the nation’s Web3 potential.

The current tax framework imposes a 1% TDS at multiple stages—crypto purchases, wallet transfers, and NFT transactions—creating bureaucratic friction. Pandey frames digital assets as a "yuva asset class" tailored for India’s youth-driven tech ecosystem, where startups could otherwise lead in blockchain development.

Despite lacking comprehensive crypto legislation, India enforces one of the world’s harshest crypto tax regimes. Industry advocates argue this approach risks alienating a generation of builders while missing a strategic opportunity in decentralized technologies.