Indians look forward to the release of the country’s interim economic blueprint for 2024, and there is heightened expectation among the Indian crypto community. Crypto users in India are eager to see this year’s regulatory plan and how the government wants to deal with virtual digital assets (VDAs).
According to reports, top on the list of crypto experts in India is the need for changes in the classification and taxation of VDAs. Many experts demand that the government remove the 1% Tax Deducted at Source (TDS).
Crypto analysts think the TDS sets the Indian crypto industry backward by hampering investors’ participation. They argue that it attracts capital losses with each trade, discouraging potential investors from entering the crypto market.
Rajagopal Menon, Vice President of WazirX, hopes the finance ministry will reduce the TDS from 1% to 0.01%. Menon also wants the offsetting of losses against gains made to be allowed. According to him, the underlying objective is to ensure a level playing field in the cryptocurrency industry.
Still, on the same subject, Sumit Gupta, Co-founder of CoinDCX, noted that the forthcoming budget represents a pivotal opportunity to propel the growth of India’s burgeoning VDA industry. According to Gupta, lowering the TDS rate from 1% to 0.01% would undoubtedly invigorate the sector. He also thinks that aligning the tax rate with the framework applicable to other assets by reducing it from 30% would impact the industry positively.
Furthermore, Gupta proposed the establishment of a robust self-regulatory body for India’s crypto and blockchain sector. He believes it is a move that would revolutionize the industry for the better.
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