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Crypto community disappoints; India hikes capital gains tax
The Indian Budget 2024, presented by Indian Finance Minister Nirmala Sitharaman, has left the crypto community in the lurch. Today, July 23, the budget presented did not propose any tax cuts or relaxations to the VDA (Virtual Digital Asset) sector. Meanwhile, the country’s stock market suffered a setback with an increase in taxes on long-term capital gains.
Nevertheless, the crypto community remains optimistic about the future prospects, as CoinDCX CEO Sumit Gupta also pointed out.
Budget 2024: a tax easing for the cryptocurrency sector?
In particular, the first Indian Budget The speech delivered by the new NDA government led by Narendra Modi did not mention cryptography or VDA. The speech, which lasted for nearly an hour and a half, nevertheless provided some relief to the emerging Web3 sector.
According to the speech of the Indian External Affairs Minister, the ‘Angel Tax’ is going to be abolished nationwide. This paves the way for the emergence of Web3 startups, offering seamless startup opportunities.
Meanwhile, CoinDCX CEO Sumit Gupta recently posted a message on X, drawing attention to the nationwide anticipation of tax relief in the VDA sector. “We will continue to push for rationalisation of the tax framework, which includes reducing TDS to 0.01%, allowing loss set-off on VDA transactions and amending the 30% capital gains tax,” he added.
Furthermore, the CEO of the Indian exchange also highlighted that the CoinDCX community had submitted quantitative analyses backed by data, revealing a potential increase in government revenues in the event of a revision of the tax system. “We hope that the government will consider our demands and we will see changes in the future,” he concluded.
It is also worth noting that Budget 2024 has raised the long-term capital gains tax threshold from 10% to 12.5% on all financial and non-financial assets. These decisions by the Finance Minister have fuelled a wave of speculation across the world. Web3 and the business landscape nationwide.
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CoinDCX CEO Reacts After Budget
Sumit Gupta, Co-Founder and CEO of CoinDCX cryptocurrency exchangesaid, “CoinDCX welcomes the Finance Minister’s announcement in today’s budget regarding the removal of Angel Tax for all categories of investors. We are confident that this will significantly strengthen the Indian tech startup ecosystem, especially in the Web3 sector. India is at the forefront of the global Web3 ecosystem with a network of over 1,000 startups spanning across industries.”
“Collectively, these Indian Web3 startups have secured over $2.5 billion in funding, reflecting the strong growth and investment potential of the sector. In 2023, Indian Web3 projects have secured approximately $270 million in funding. These numbers are a testament to investor interest in early-stage Web3 innovation in the region,” he added.
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