India’s 30% flat levy on all capital gains made on cryptocurrencies kicked in on April 1 in a development likely to stifle the relatively nascent industry in the country.

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Fast facts

  • Finance minister Nirmala Sitharaman has been facing investor backlash over her February proposal for the new tax.
  • A 1% tax deducted at source (TDS) on every crypto transaction will kick in on July 1.
  • The tax may convert day traders to long-term investors or lead to an exodus of those unwilling to make that change to crypto-friendly jurisdictions, some opine.

See related article: India’s tax bogeyman is scaring off young crypto investors