cryptocurrency news: What does the Indian cryptocurrency industry expect from Budget 2024? Here is the wish list

As the newly elected NDA government prepares to present its comprehensive budget for the fiscal year 2024-25, all eyes are on Finance Minister Nirmala Sitharaman. Among the many sectors eagerly awaiting announcements, the cryptocurrency industry has high hopes for favorable reforms that could significantly impact its growth and regulatory landscape. Industry experts have outlined a clear wish list ahead of the budget, focusing on critical issues such as high transaction tax and the inability to offset losses with gains. These concerns have been significant deterrents for investors and innovators in the crypto space. Meanwhile, the crypto community is optimistic that the government will address these challenges to create a more favorable environment for the industry.

Industry leaders have outlined their expectations for Budget 2024:

Edul Patel, CEO of Mudrex

We expect the newly formed government to address critical challenges faced by cryptocurrency investors in India. In particular, the 1% TDS on every transaction and the current inability to offset losses against gains are significant deterrents for investors. Addressing these issues could foster a more conducive environment, encouraging innovation and growth within the industry.

Dilip Chenoy, President, Bharat Web3 Association

The Indian Ministry of Finance invited the BWA for pre-budget consultations. We presented our demands and expectations, including a key demand for a reduction in the transaction tax from the current 1% to 0.01%.

We also asked the Ministry of Finance to allow losses on a VDA transaction to be offset against profits on other transactions. We argued that the government should treat income from asset transfers on par with other sources of income. We urge the government to implement a clear and industry-friendly policy. regulationsand tax reforms that allow this emerging sector to thrive and create new opportunities and revenue streamsManhar Garegrat, Country Head India & Global Partnerships, Liminal Custody

For us at Liminal Custody, it is important that the upcoming budget addresses key issues in the Indian economy. virtual digital resource (VDA) sector – primarily in the area of ​​taxation. As part of several other jurisdictions where we operate as licensed and regulated custodial service providers, we see regulators encouraging the growth of this nascent sector and believe that the Indian economy can benefit enormously by streamlining taxation for digital resources.

Shivam Thakral, CEO of BuyUcoin

We expect the next budget to address our grievances and reduce TDS and capital gains tax on VDA transactions to reasonable levels, allowing us a level playing field to function and thrive.

We strongly support the establishment of a comprehensive regulatory framework for the virtual digital asset market in India. This framework should be applicable to both Indian and offshore companies and should ensure a level playing field for all, promoting fair and unhindered activity.

Rajagopal Menon, Vice President, WazirX

THE cryptocurrency industry He hopes that the finance minister will eliminate or reduce the 1% TDS, allow loss set-offs and capital gains taxes based on income brackets.

Since India is a signatory to the G20 ministerial declaration, we can expect cryptocurrency regulations by 2025. We hope that the regulations will be in the Goldilocks zone, neither too strict nor too lax, thus creating a favorable environment for the sector.

Sumit Gupta, Co-Founder, CoinDCX

CoinDCX has submitted its demands and recommendations to the Government of India and was also part of the BWA delegation that met with officials from the Ministry of Finance as part of the pre-budget consultations. Our key demands include:

To ensure a level playing field for the Indian VDA sector vis-à-vis its offshore counterparts, we urge the government to broaden the scope of the TDS mandate to explicitly include offshore platforms.

Further, we advocate a reduction in the TDS rate under Section 194S(1) from 1% to 0.01%, highlighting the need for a conducive tax environment to boost the development of the sector.

To achieve fair taxation, we propose an amendment to Section 115BBH to reduce the tax rate from 30%, equal to that of activities in other sectors.

Further, we recommend reviewing the threshold limit for tax deduction under Section 194S, suggesting an increase from INR 10,000/INR 50,000 to INR 5,00,000, in line with the provisions of Section 194-O of the Act.

(Disclaimer: Recommendations, suggestions, opinions and views provided by experts are personal. They do not represent the views of The Economic Times.)

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