CoinDCX has released a report that attempts to highlight issues with India’s crypto tax policies, while seeking reforms from the government in order to improve compliance and tax transparency in the country. The FIU-registered crypto exchange is the latest of many firms that have attempted to appeal to the government to reduce the taxes on cryptocurrencies in the country — including the one percent tax deducted at source (TDS) for crypto transactions, and 30 percent tax levied on incomes generated by crypto activities. In its report titled ‘Redesigning TDS for Transparency and Compliance’, the Indian crypto firm claims that the one percent TDS on all crypto transactions was initially envisioned as a transparency and compliance tool but its application is not aligned with the nature of digital asset markets, spelling losses for the industry players and participators. “A large body of modern economic literature suggests that the marginal tax rate is inversely correlated with reported income and positively correlated with evasion, as observed with the imposition of one percent TDS on VDAs in India,” the …