Industry experts: India is unlikely to include crypto tax breaks in upcoming budget

Industry experts say Indian Finance Minister Nirmala Sitharaman will unveil the full budget for 2024-2025 on Tuesday, but the country is unlikely to change its controversial tax deduction (TDS) for crypto transactions.
Punit Agarwal, founder of cryptocurrency tax platform KoinX, said, I don't expect India to reduce its TDS by 1% in the short term, although it is necessary. The current tax rate leads to capital outflow to international exchanges and DEXs, ultimately causing losses to the government.
Rajat Mittal, a cryptocurrency tax advisor to the Supreme Court, said high TDS could prompt retail investors to switch to offshore exchanges, but the government's focus on strict regulation suggests a lower tax rate is unlikely. In the digital asset space, strong regulation is needed, which is considered more important than easing industry concerns.