What Future of Crypto Taxes and Regulations May Look Like in India – Insights From Expert
The Indian crypto market is buzzing with talks of taxation and regulations. With the central government set to announce the interim budget on 1st February, crypto exchanges and traders are hoping for relief from the 1% TDS (Tax Deducted at Source) and 30% tax on crypto. However, the chances of their wish being granted seem less likely.
In a conversation with Gaurav Mehta, the founder of Catax, India’s first crypto tax software, we explore where India is heading with crypto tax laws and regulations.
Gaurav conceived the idea of running a crypto tax software back in 2014 and had already started pitching the idea to investors, 8 years before any formal crypto tax regulations in India. Though the solution of crypto taxes didn’t start to materialize until 2022 for Catax.
Gaurav, who works as a forensic expert with different law enforcement agencies on cases related to blockchain, was a guest lecturer at National Academy of Direct Taxes where he trained IRS officers from 2021-2023. Catax, which primarily started to serve crypto taxation solutions to governments and businesses, aims to help a million retail customers with free crypto tax solutions in 2024-2025, Gaurav told Cryptonews.
Talking about current crypto taxations in India, Gaurav said:
“Up until 2023, the anonymity of the blockchain primarily benefited individuals. However, starting in 2024, the dynamics shift in favor of organizations, compliance, and all stakeholders. This shift occurs because the recent advancements have enabled the capacity to interpret, and track the blockchain effectively. As a result, taxation is poised to become a significant concern for everyone in the upcoming years.”
“The government is now building competency in this domain that will
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