Cryptocurrency trading volume at exchanges in India has fallen after the country’s 1% tax deduction (TDS) took effect at the beginning of the month. Some of the major crypto exchanges saw a drop of around 80% in volumes.
Crypto trading volumes fall across India
The trading volume at crypto exchanges in India has declined sharply after the new TDS (Tax Deducted at Source) came into effect from July 1.
Trading volumes on major Indian crypto exchanges Wazirx, Coindex, Zebpay and BitBans fell over 83%, 70%, 76% and 18%, respectively, from Thursday to Sunday, Mint reported on Monday, citing data from research firm Crebaco. Giving.
The controversial 1% TDS is now effective on crypto transactions above Rs 10,000. The TDS is in addition to the 30% profit tax on crypto that came into effect in April.
Crabco founder Siddharth Sogni told the publication that the sharp drop in crypto trading volumes was also caused by global financial market sentiments. In addition, liquidity providers in India have supported, he said.
Coindcx CEO Sumit Gupta warned:
With 1% TDS, the trading frequency is likely to decrease in just 7 months. And the volume is expected to go down in 10 months.
Some traders are confused about whether 1% TDS is applicable when using foreign cryptocurrency exchanges. Wazirx founder Nischal Shetty clarified:
Misinformation has been spread by some people that TDS is not levied on trading on Forex. this is wrong.
He explained that using exchanges that do not deduct TDS means that traders are liable to pay TDS directly to the Income Tax Department of the country.
“Please be aware of this because if you trade in Forex and do not pay TDS, you will have a huge TDS amount pending for payment,” warned the executive.
What do you think about India’s 1% TDS? Let us know in the comments section below.
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