July 5, 2022 4:44:56 pm
As the crypto tax deducted at source (TDS) came into effect on July 1, over 83 per cent of crypto traders believed that the recent tax implementation deterred their trading frequency, reveals a new survey by crypto exchanges WazirX and Zebpay. The survey was involved over 9,500 respondents.
The findings revealed that around 24 per cent of respondents are contemplating shifting their trading activities to international exchanges owing to the high taxation. At least 29 per cent of the respondents traded lesser than the pre-tax period. According to the survey, 27 per cent of the respondents sold over 50 per cent of their portfolio before April 1, whereas 57 per cent sold under 10 per cent.
Further, the survey said that revenue from tax collections for the government will decline as 27 per cent of customers (34 per cent traders and 23 per cent holders) said they will trade less than earlier owing to the current taxation policy.
It should be noted that the traders were classified as those who traded every day, more than five times a week, or at least more than twice a week and the holders were those who traded a few times a month or were invested for the long term.
Subscriber Only Stories
The report further indicates that the worst impacted were millennials compared to their senior counterparts. Almost 28 per cent of the respondents aged 18 and 35 have sold more than 50 per cent of their holdings before April 1 . “23 per cent wished to move their holdings to an international exchange to avail a more favourable tax climate. This emigration poses a significant risk in terms of investors falling prey to non-KYC compliant international exchanges. This is in addition to the fact that 40% of the total affected traders have already sold more than 50% of their holdings before April 1,” the survey noted.
“The results indicate a considerable number of respondents intend to reduce their trade frequency and participation in the category. While India’s crypto tax policy is a step forward, reconsidering certain aspects will help build a more supportive regulatory environment for all industry stakeholders and will ultimately contribute to overall economic progress,” said Avinash Shekhar, CEO of ZebPay in response to the survey findings.
📣 Join our Telegram channel (The Indian Express) for the latest news and updates
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.