1 August 2026
Indian Parliament Member Says Imposing 1 Percent TDS Will Kill Crypto Asset Class
On Friday, Lok Sabha passed Finance Bill 2022, which includes a proposal to tax Crypto income at 30% and impose a 1% tax deducted at source (TDS) on every Crypto transaction. The 1% TDS will begin on 1st July, while the 30% income tax will start levying on 1st April.
One of the parliament members, Ritesh Pandey expressed his concern over 1% TDS on Crypto transactions. He claimed that this tax will kill the Crypto industry. For example, he said that if anyone buys Crypto then transfers the coins to a wallet, and uses them to buy a non-fungible token (NFT), the individual will be charged a 1% TDS at each stage.
He claimed, “When you impose a 1% TDS at three stages, it will give birth to red tapism. Doing so will also finish this asset class, which is very young.”
Although Indian Finance Minister Nirmala Sitharaman said that the 1% TDS on Crypto is for tracking purposes, and it is nothing new.
In parliament, she said, “TDS (tax deducted at source) is more for tracking. It is not an additional tax and not a new tax. It is a tax that will help people track it, but at the same time the taxpayer can always reconcile it with the total tax to be paid to the government.”
The Crypto exchange Wazirx founder, Nischal Shetty, said that “1% TDS is an example of killing the golden goose. Hope to see the government revisit this and reduce or eliminate this TDS in order to help the crypto industry grow further.”
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
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