Sumit Gupta, the co-founder and CEO of Indian crypto exchange CoinDCX, has proposed lowering the taxes on crypto earnings, currently taxed at 30% in India. Additionally, he reached out to social media users to support a campaign for more favorable Web3 tax policies.
Gupta’s Initiative for Tax Reduction
Gupta announced on his X account, urging for more favorable Web3 taxation policies in India. He emphasized the need to change the tax system to prevent the loss of ₹17,700 crores in TDS over the next five years. Additionally, he mentioned that the CoinDCX policy team and the Bharat Web3 Association, of which CoinDCX is a founding member, have been engaging with various political leaders for years, advocating for friendlier policies for the Web3 ecosystem.
Potential Losses Due to High Taxes
Gupta highlighted the risk of losing ₹17,700 crores in TDS over the next five years due to high taxation rates. Since the TDS implementation in July 2022, Indians have traded over ₹500,000 crores on offshore crypto platforms. He noted that a recent report by Esyacentre indicates that India has lost ₹6,000 crores in tax revenue by pushing crypto investors towards foreign countries.
Next Steps and Recommendations
Gupta urged socially active users to assist in creating better conditions for Web3 in India. He proposed three primary requests: reduce the crypto tax rate to 0.01%, amend Sections 194S and 115BBH of the Income Tax Act to ensure that offshore platforms comply with local tax laws, and allow taxpayers to offset losses from Virtual Digital Asset transactions against gains from other VDA trades.
Gupta emphasized the importance of reducing crypto taxes and changing policies to empower India as a Web3 leader. His proposals are viewed as steps towards strengthening the Indian crypto ecosystem.
