- Ritesh Pandey (former Member of Parliament in India) is advocating for tax relief (30% tax cut, 1% TDS removal) and clearer regulations
- He points out that the crypto sector is being held back by heavy tax burdens and unclear regulations
- India hosts over 100 million crypto users (around 7% of the adult population), and is projected to become a $15 billion market by 2035
Ritesh Pandey (former Member of Parliament in India) is once again advocating for Indian crypto users, pushing to cut the 30% crypto tax, remove the 1% TDS (Tax Deducted at Source), and implement clear and fair regulations.
Pandey argues that crypto is a “yuva asset class,” appealing to India’s young talent and innovators. He points out, however, that the sector is being held back by heavy tax burdens and unclear rules.
While his call resonates loudly on social media, no official moves by the Indian government to amend tax rates have been announced.
In its pursuit of tighter control, several months ago, the Indian government, through Budget 2025, rolled out mandatory reporting for cryptocurrency transactions under Section 285BAA, specifically aimed at improving tax compliance.
India’s harsh tax system is pushing the industry away
India’s crypto tax system remains one of the world’s harshest, deterring entrepreneurs and shifting crypto activity offshore.
As things stand right now, India’s approach through retroactive taxes, no loss-set-off, and 1% TDS on each trade stands in stark contrast to crypto-friendly jurisdictions like Dubai and Singapore. This has resulted in what’s called a ‘brain drain’ of crypto startups and talent.
Plus, without clear crypto laws, investors worry about legal exposure. As such, Pandey emphasizes that regulation can drive adoption and reduce fraud.
Rising crypto adoption
India hosts over 100 million crypto users (around 7% of the adult population), and is projected to become a $15 billion market by 2035.
Intriguingly, adoption is not limited to metropolitan areas. Crypto trading is also booming in smaller cities like Nagpur, Jaipur, and Lucknow, with Q4 2024 volumes doubling to $1.9 billion, largely from retail traders seeking supplementary income.
Some months ago, major global exchanges, such as Coinbase and Binance, re-entered India following anti-money‑laundering registration and regulatory dialogue.
Still, the abovementioned problems persist. In 2022, India imposed a 30% tax on crypto capital gains and a 1% TDS on every trade, which resulted in over 90% of Indian crypto trading moving offshore.
However, leading crypto platforms in India, including CoinDCX and CoinSwitch, are actively advocating for policy changes, specifically pushing to reduce the TDS to 0.01%, increase tax exemption limits, and permit losses to be offset or carried forward. These measures are intended to boost market liquidity and revitalize domestic trading activity.
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