Indian Budget Presentation 2024: Here’s What To Expect For Crypto, Startups
Indian finance minister Nirmala Sitharaman is all set to present the interim budget 2024 in Parliament
Indian finance minister Nirmala Sitharaman is all set to present the interim budget 2024 in Parliament. The full-fledged budget will be presented by the new government that comes to power after the elections, which are due later in the second quarter of 2024. The interim budget is a short term financial plan that seeks the Parliament’s approval for a grant in advance to meet the Union government’s essential expenditure for the initial months of the new financial year. A full-fledged budget would be presented by the incoming government that is elected to Lok Sabha.
The BSE SENSEX, a market weighted stock market index of 30 financially strong and well known companies listed on the Bombay Stock Exchange, is up by 0.40% ahead of the interim budget presentation. The NIFTY 50 is up by 0.20%.
Also Read: 1% TDS on Crypto: How Does It Impact Crypto Investors In Indian Union Budget 2024 ?
Budget Expectations – Startups & Crypto
Among the expectations are tweaks to policy around tax benefits, employee stock options and stock awards for startups. The Budget is also expected to provide for the simplification in the capital gains tax regime. For the crypto industry, stakeholders have been highlighting the impact that the one percent withholding tax on crypto gains has had on the domestic digital assets market. The rule led to diversion of crypto exchange user traffic to foreign platforms.
The finance minister provided no relief for the crypto industry market participants by continuing to levy the flat 30% tax on virtual assets, which was earlier proposed in the financial year 2022. Besides the high tax slab imposition, the Union government had imposed an additional 1% tax deductible at source (TDS) on all crypto transactions in the 2022 budget presentation. This made India one of those countries that imposed the highest tax slabs for crypto transactions.
