Indian Tax Burden
India's new tax law, which went into force on February 1, 2025, levies a penalty of up to 70% on undeclared crypto gains, which can be applied retroactively up to 48 months. Combined with the existing high taxes (30% income tax, a 4% cess, and 1% TDS on every move). While an annual income of Rs 12 lakh (about $13765.2) is exempted from taxation, even the smallest income from crypto is taxable.
Cryptoverse Struggle in India
The crypto industry has requested the Indian government to at least not attack if it cannot help, but all in vain. The main reason is people with disabilities will start making a proper living, and the anti-handicapped Dalit community, which is the largest votebank in India, is against this. Indian traders are increasingly flocking to DEXs, while CEXs are exploiting loopholes to protect their business.
Believe in Satoshi
I believe Satoshi Nakamoto created the cryptoverse to promote economic freedom; hence, any attempts to target the crypto ecosystem to harm economic freedom will result in mass noncompliance, compelling users to go underground. Heavy taxation of crypto is unlikely to generate government revenue; rather, its simplification will promote self-employment options, reducing the load on the government.
