The founder of the Indian crypto exchange explains how the Indian government is going to bring problems for its 1% TDS system for crypto traders as well as for government agencies.
Wazirx is a popular Indian crypto exchange, which is holding the first rank in the crypto industry of India with its highest crypto trade volume. This exchange is under the ownership of Binance exchange, and Wazirx is getting an advantage because of the Binance exchange support to transfer funds easily between Binance & Wazirx at zero cost.
On 8 March, Nischal Shetty, founder & CEO of WazirX crypto exchange, raised his voice against the 1% TDS system on the crypto trade transaction rules of the Indian government.
Nischal took a real example and calculated everything based upon the last year’s trade volume and considered that every trader will make a 10% profit. In that situation the Indian tax department will collect $900 million and they will later return the same amount to users as a refund in exchange of $100 million tax collection on the net income.
Wazirx founder also explained that besides the tension to manage this fund under the TDS system, traders will face a situation where they will have a very little amount of funds and very little control on their capital to trade with the crypto assets.
“By locking this $900M, the Gov would cripple traders and prevent them from trading due to lack of capital. Effectively, this would drastically reduce the potential to earn profit. This, in turn, would affect the $100M in income tax earnings of the government.”
Nischal shared his point of view on how the government of India can easily introduce its fair TDS system with 0.1% TDS instead of 1%. In that situation traders will get an ease to handle their capital trade funds and also more trade will give more profit and it will lead to more profit for the government to generate revenue.