Finance Minister Nirmala Sitharaman had announced that not only the 30% tax but also the 1% TDS will be deducted from July.
Accordingly, from July 1, 1% TDS is being deducted on every crypto transaction. This has increased the pressure on investors.
After the one percent TDS rule on every transaction came into force from July 1, Indian crypto exchanges have seen a certain decline in trading volumes.
Indian exchanges WazirX, CoinDCX, BitBNS and Zebpay have reported an average daily transaction volume of $5.6 million (roughly Rs. 44 crore) in the last few days.
At the same time till June, this amount was about 10 million (about Rs. 80 crore) dollars. India still has a long way to go before its crypto community fully transforms the tax laws announced in the Virtual Digital Assets (VDA) sector.
Crypto exchanges and their investors are under a lot of trouble due to the strict tax laws of the Indian government.
By July 3, trading volumes on crypto exchanges BitBNS and CoinDCX were reportedly down 37.4 percent and 90.9 percent, respectively.
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