On July 1, trading turnover on India’s leading bitcoin exchanges fell sharply, according to Nomics. The reason was the entry into force of 30% tax on profits from cryptocurrency transactions and a 1% levy under TDS.
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In a 24-hour period, the figure on the WazirX exchange fell by 63% (from $14.53 million to $5.36 million), while on CoinDCX it fell by 20% (from $2.62 million to $2.09 million).
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The tightening of the tax regime was agreed in April 2022. The TDS levy applies to trades worth more than 10,000 rupees ($127) or if their total volume during the reporting period exceeded 50,000 rupees ($661.8).
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Subsequently, media reported possible additional steps in this direction.
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In May, the Computer Emergency Response Team issued a directive requiring crypto exchanges to retain client data for five years. This is how authorities plan to deter tax evasion.
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