Business
India’s Crypto Industry Misses Mention in FM’s Budget 2024 Speech, No Change in Taxes
By - 01 Feb 2024 06:23 PM
"Social media platforms have been inundated with posts from the Indian crypto and Web3 industries pleading with the government to ""ReduceCryptoTax"" for days now. In the interim budget speech she gave to the parliament on Thursday, February 1, India Finance Minister Nirmala Sitharaman did not even bring up the cryptocurrency industry, despite the outcry. Members of the industry feel a little ignored and let down by this. The business community does not, however, give up hope that the elected government's finalized budget may undergo some modifications following the conclusion of India's general elections later this year.
During her hour-long speech, Sitharaman stated that no tax changes are being implemented at this time.
""We believe crypto and virtual digital assets can be a force multiplier in achieving 'Viksit Bharat' by empowering individuals at the grassroots level,"" WazirX vice president Rajagopal Menon said in response to the development. Given that India is at a turning point in the cryptocurrency revolution, provisions for long-term financing of domestic crypto projects will benefit both digital public infrastructure and the PM's goal for ""Anusandhan"" (research). We anticipate that these developments will be taken into consideration by the government in addition to our current requests for a reduction of TDS rates to 0.01 percent and an offset of trader losses."
The hashtag #ReduceCryptoTax has been trending on X in India since last week, and thousands of posts have called for an update to the country's crypto tax laws.
India implemented a 30 percent tax on all cryptocurrency profits in July 2022, in addition to imposing a one percent tax deduction on each cryptocurrency transaction. Industry insiders claim that this tax structure has caused a decline in cryptocurrency-related activity in India, which has resulted in the migration of Web3 talent and businesses to countries with more hospitable tax regimes. Numerous cryptocurrency companies in India have even declared layoffs, citing a decline in users and inquiries about the industry.The three demands from the cryptocurrency community were anticipated to be addressed in this budget: carrying forward losses, similar to stock gains, and flexible tax slabs with a TDS reduction from one percent to 0.01 percent on each transaction.However, these recommendations from the cryptocurrency industry have not been taken into consideration for this interim budget. The finance minister did make an announcement about a plan to provide a 50-year interest-free loan of Rs. 1 lakh crore to assist India's youth, which is seen favorably by the crypto community.
