As the announcement of the Union budget for 2024 in India approaches, the local #Web3 community is striving to achieve changes in tax regulations concerning cryptocurrencies.
Despite the Indian web3 community's continuous calls for changes over the last two years, the Indian government has yet to agree to revamp the cryptocurrency tax. Many in the industry argue that the current laws hinder the development of cryptocurrencies in the country and lead to a brain drain to more #crypto-friendly countries.
Loud Call for Revision of Indian Cryptocurrency #Tax Law
Indian Finance Minister Nirmala Sitharaman plans to present the budget for the fiscal year 2025 on February 1. In this context, the Indian crypto community is intensively promoting the 'ReduceCryptoTax' slogan on social media.
The cryptocurrency sector in India, through social media, presents three main demands to the government: more flexible tax rates, reducing the tax deducted at source (TDS) from 1% to 0.01% for crypto transactions, and the ability to carry forward losses similarly to the stock market.
Pushpendra Singh, co-founder of SmartViewAi in India, commented that the Indian system of taxing cryptocurrencies is "the worst in the world." Referring to the hashtag "ReduceCryptoTax," Singh pointed out the combination of 1% TDS and 30% cryptocurrency tax, the absence of the ability to offset losses, and the lack of banking support.
Sathvik Vishwanath, CEO and co-founder of Unocoin, described the Indian tax regime for cryptocurrencies as "unfair." He advocated for a change in tax laws concerning cryptocurrencies in the country, emphasizing the problems of the current regulations. He said, "Unfair taxation not only hinders our #cryptocurrency industry, but also slows down the process of rectification and global competitiveness. Changing tax laws will help us achieve success faster!"
Further Demands of the Indian Web3 Community
Keyur Rohit, a crypto influencer and YouTuber, states that the expected changes in Indian cryptocurrency law include creating a clear legal framework and tax regulations. The sector also hopes for a revision of the definition of virtual digital assets (VDA), which would include exceptions for tokenized assets with demonstrable value.
Additionally, there is discussion about supporting innovation and research in digital assets, which could bring opportunities for tokenization of real assets valued at 10 trillion dollars. Rohit also mentioned that 2024 will be a pivotal year for the #blockchain industry in India, as the integration of AI and other advanced technologies is expected.
Other demands include supporting Web3 startups through special economic zones and advocating for tax incentives and "sandboxes" to promote growth. The request to reduce TDS remains a constant point of discussion.
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