Tax policies in India raise concerns for crypto and gaming industries [Advance Cash ]

  • Sumit Gupta expressed concern about the negative impact of taxes.
  • He pointed out the detrimental consequences of a 1% TDS on crypto transactions.

In recent Twitter chats, experts and industry watchers have raised concerns about the tax policies being implemented in India, especially those affecting the crypto and gaming sectors. Sumit Gupta, CEO of CoinDCX, and Twitter user Ravisutanjani expressed their apprehensions regarding the potential negative impact of taxes on these industries.

Sumit Gupta has highlighted the harmful consequences of a 1% withholding tax (TDS) on crypto transactions, saying it has had a chilling effect on the Indian crypto industry. According to Gupta, this policy has inadvertently favored offshore crypto platforms that operate outside the scope of Indian tax laws, disadvantaging local businesses and hampering industry growth.

Similarly, Gupta expressed concerns about the 28% GST levied on the total face value of online games. He suggested that this tax rate could potentially decimate the Indian gambling industry, with illegal offshore platforms reaping the profits at the expense of domestic companies.

Tax Burden of Indian Citizens

Ravisutanjani further joined in the conversation by pointing out the existing tax burdens for Indian citizens, including income tax rates of up to 30% and 28% GST applicable to various goods and services. Ravisutanjani expressed his frustration over the exclusion of fuel and alcohol from the scope of the GST, while crypto and games are taxed.

Additionally, Ravisutanjani drew attention to the Board of Control for Cricket in India (BCCI), which is classified as a charitable organization, implying perceived inconsistencies in the tax system.

Both Gupta and Ravisutanjani have argued that taxing emerging industries like crypto and gaming can have unintended consequences. They expressed concern that these tax policies create arbitrage opportunities, benefiting illegal offshore platforms and causing adverse effects on customers and startups.

It is important to note that these views represent the opinions of individuals on social media platforms and may not reflect the full range of views on the subject. As the debate surrounding taxation in the crypto and gaming industries continues, stakeholders and policymakers will likely take these concerns into account when crafting future tax policies.