India's tax system is getting increasingly aggressive across digital assets, crypto transactions, and even routine financial activities. The government is layering GST, TDS, and capital gains taxes on nearly every touchpoint—making compliance a nightmare for traders and businesses.
For crypto specifically, there's a flat 30% tax on gains with no loss offset, plus 1% TDS on every transaction above a threshold. This effectively kills high-frequency trading and liquidity provision strategies.
If you're building or trading in India, you need to account for tax drag in every calculation. It's not just about profit anymore—it's about net-after-tax returns, which are getting squeezed hard.
For crypto specifically, there's a flat 30% tax on gains with no loss offset, plus 1% TDS on every transaction above a threshold. This effectively kills high-frequency trading and liquidity provision strategies.
If you're building or trading in India, you need to account for tax drag in every calculation. It's not just about profit anymore—it's about net-after-tax returns, which are getting squeezed hard.