Crypto players want FinMin to relook proposed 1% TDS

economictimes.indiatimes.com:

Mumbai: The crypto industry has reached out to the finance ministry, seeking to either reduce or eliminate the 1% tax deducted at source (TDS) proposed on the proceeds of all crypto transactions, as the Finance Bill will be approved in the Parliament session that commenced Monday. Top crypto players are taking up the demand with the ministry through the Blockchain and Crypto Assets Council (BACC), which is part of the Internet and Mobile Association of India, and startup industry body IndiaTech. According to two people ET spoke to, these crypto platforms that are members of the BACC have recommended that the proposed TDS be reduced to 0.01-0.1%.

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“Crypto platforms have recommended a range, and urged the finance ministry to consider it,” said one of the people who is directly familiar with the discussions. “Even if things are not resolved before the next financial year begins, the industry is hopeful that the TDS requirement may reduce in the next 2-3 quarters.” Meanwhile, startup industry body IndiaTech has written to finance minister Nirmala Sitharaman and revenue secretary Tarun Bajaj, requesting to eliminate the TDS entirely or to bring it down to 0.1%. “If the intent of the proposals was to seek additional revenues from such crypto assets, then the 1% tax on the entire transaction value will render the business unviable, thereby having an impact on government revenues forcing investors and those engaging in trade to operate overseas or be forced to resort to operating through opaque P2P methods,” IndiaTech, an industry association representing consumer Internet startups, wrote in the letter, a copy