No rationale for lowering 30% tax on crypto profits: Revenue Secretary Tarun Bajaj

‘Centre open to resolving genuine problems arising from new tax regime’

The government is open to resolving genuine problems and reservations of crypto-trading players arising from the new taxation regime for virtual digital assets, but is of the firm view that there is no economic rationale for lowering the proposed 30% tax on profits from crypto assets’ trading.

While a review of the 1% TDS (tax deducted at source) rate for all virtual assets’ trades could perhaps be considered, top Finance Ministry officials also pointed out that even investments in equity and debt instruments on stock exchanges which create value for the economy, involve a Securities Transaction Tax levy.

Reacting to industry fears about the tax rates, Revenue Secretary Tarun Bajaj strongly backed the 30% rate and said there was no reason to tax these assets lower than what anyone else pays on their income.