1% TDS Under Fire: India’s CBDT Opens the Door to Crypto Reform
🔑 Key Takeaways India’s Central Board of Direct Taxes (CBDT) has begun stakeholder consultations on a dedicated crypto framework, including potential changes to the 1% TDS and rules on loss offsetting . Inflation has cooled in 2025, but retail investors still use crypto for diversification; India remains a global leader in grassroots adoption , even under tough taxes. Access & perception : UPI’s dominance and FIU-registered exchanges make on-ramps familiar, but prior offshore migration and RBI skepticism shape behavior. Regional context : Indonesia, Vietnam and the Philippines show rapid adoption; Singapore/Japan lead on licensing clarity— India’s gap is policy certainty . CryptoQuibbler : If CBDT trims TDS and allows loss set-offs, India could unlock domestic liquidity without sacrificing compliance. 🗞 Main Story India’s CBDT is formally engaging crypto exchanges and other market participants to determine whether current law suffices or a new statute ...