Pushpendra Singh, founder of Pushpendra Tech, said the India-based platform outlined the effects of high taxation on virtual digital assets, which have reduced local exchange volumes, while proposing policy adjustments to retain talent and revenue in the country.
“India doesn’t have a crypto problem. India has a crypto tax problem,” said Singh. “This is capital punishment for innovation. High taxes don’t increase compliance. They push activity underground. No one is asking for “zero tax”. We are asking for fair tax.”
The statement originates from an X thread by Singh addressing India’s cryptocurrency tax framework and its implications for the sector. This post details how the 30 percent flat tax and one percent Tax Deducted at Source (TDS) have affected traders and startups, with calls for allowing loss set-offs and treating crypto as a standard asset. It advocates for rational policies to position India as a leader in Web3 technology.
India’s cryptocurrency sector faces challenges from a 30 percent tax on gains and one percent TDS on transactions, leading to significant migration of trading volume to offshore platforms. Local exchanges report sharp declines in user activity and revenue as participants seek lower-tax jurisdictions. This shift impacts domestic innovation and potential government revenue from the growing digital asset market in the region.
Several countries implement favorable crypto tax policies to attract blockchain businesses and investors. For instance, Singapore applies no capital gains tax on cryptocurrency holdings, which supports fintech growth and compliance. Portugal offers tax exemptions on long-held crypto assets, encouraging retention and participation in the digital economy.
Singh founded Pushpendra Tech focusing on cryptocurrency education and tools after a background in software development. He created content platforms including YouTube channels to explain blockchain and digital assets in Hindi and English, reaching large audiences in India. Singh advocates for policy changes to boost local crypto adoption and innovation through community engagement.
