The crypto industry raises a hue and cry over the government’s decision: 

The decision of the govt. that offsetting losses from 1 crypto trading pair against the profits from another pair are unwelcome by the crypto industry as they raised a hue and cry. Industry experts opine that this decision might drive the investors from trading legitimately in the crypto currencies and this will also obstruct the growth. And they also feel that the very purpose of the govt. proposed taxes will be defeated.  

Section 115BBH provides a tax gain from VDAs: 

Section 115BBH is a section that has been mooted in the Income Tax Act, to add a provision for Tax gains from Virtual Digital Assets (VDA), like taxing thirty percent on profits and there is a one percent TDS (Tax Deducted at Source) by exchanges. Ashish Singhal, Co-founder & CEO, CoinSwitch said that this move by the govt. hampers India’s crypto industry, and also the investors. This move will dispel users from platforms and KYC Compliant exchanges to the underground mafia of the peer-to-peer grey market. This defeats the very purpose of tax being levied. Betting website

As a result of the govt. decision miners can’t deduct infrastructure costs incurred by obtaining the crypto currencies: 

This also means that the miners and investors, cannot deduct infrastructure costs, incurred while obtaining the crypto currencies. This will dispel people away from crypto currencies because mining needs a lot of power (electricity) that can be costly. And a thirty percent tax without deductions will render the small-time miners penniless. An actual course of action is to gradually bring the regulations on par with the other asset classes. And in equities, if a provision like this would have been applicable, it would have disheartened the investors from taking part.  

The govt. is discouraging investment in Bitcoin:

Recognition in the (taxation) law, gave a ray of hope, for the industry and the crypto enthusiasts. It seems as though the govt. is discouraging investment in Bitcoin, and the other cryptocurrencies, by the way, it is computing tax liabilities. This is in spite of the news that the govt. might introduce a bill to regularize them.