News
Budget 2024: Crypto industry continues to wait for tax rate cut
Cryptocurrency industry players continue to hold out hope for an announcement of reduction of taxes on cryptocurrencies in the final budget, even if Interim budget turned out to be a non-event for them, with no mention of the industry.
Some spokespersons claim that the VDA (virtual and digital assets) the industry was hoping for a tax and TDS Reliefbut the hopes were not disappointed, although postponed to a later date.
In the meantime, they support the Prime Minister’s direction in favor of research or anusandhan. Their two main demands, namely reducing TDS to 0.01 per cent and allowing losses to be compensated, remain valid, say industry players.
Dilip Chenoy, president, Bharat Web3 Association, says: “Considering that it was a budget voted on account, we did not expect a big movement during the session. We look forward to the changes being announced after the election, when the full budget is announced. »
Hope persists
An industry spokesperson says the VDA industry was hoping for tax relief as it plays a vital role in facilitating decentralized storage.
“While the VDA sector was hoping for tax and TDS relief, we remain optimistic that the comprehensive budget will bring positive developments, including reduced taxation and a supportive policy framework. The VDA sector, anchored in digitalization, innovation and research, plays a pivotal role in facilitating decentralized storage, fractional ownership, metaverse development, interoperability, scalability and sustainability,” says Sumit Gupta , co-founder, CoinDCX.
Rajagopal Menon, vice-president, WazirX says, “We believe crypto and VDAs can be a force multiplier to achieve Viksit Bharat by empowering individuals at the grassroots level. Digital public infrastructure and the Prime Minister’s ‘Anusandhan’ aspiration will benefit from the incorporation of provisions for long-term financing of national crypto projects, given that India is at a pivotal phase of the revolution cryptographic. We expect these developments to be reflected in the government’s agenda as well as our current demands to reduce TDS rates to 0.01% and compensate traders for losses. »
Also Read: Income Tax Budget 2024 Live Updates
“The interim budget presented limitations that prevented necessary fiscal adjustments for the sector. On a positive note, the Indian government now has the opportunity to introduce comprehensive crypto regulations and improved tax policies in the next comprehensive budget. We continue to urge the government to allow compensation and carry forward of losses, reduce TDS on VDAs from 1% to 0.01% and treat income from VDAs on par with other capital assets.” , says Ashish Singhal, co-founder and CEO of the group, The Peepal Company
Focus on innovation
Spokespersons welcome announcement of ₹1 lakh crore corpus as long-term loans to encourage innovation in booming sectors
“In this interim budget, Finance Minister Nirmala Sitharaman lays out a strategic plan for continued economic progress, resonating with India’s ambition to achieve developed nation status by 2047. Strongly emphasizing with a focus on promoting innovation and embracing digital transformation, it charts the path towards inclusive growth. “, says Sumit Gupta of CoinDCX.
“At a broader level, the budget is a statement of intent. The ₹1 lakh crore long-term loan corpus to encourage innovation in booming sectors and renewed commitment to developing deep technologies will be the GDP multipliers for the decade to come,” adds Singhal of PeepalCo.
3.6 million Indians visited us in a single day, choosing us as India’s undisputed platform for the general election results. Check out the latest updates here!
Topics that might interest you