Indians are eagerly awaiting the release of the country’s interim economic plan for 2024 and there is heightened anticipation in the Indian crypto community. Crypto users in India are eager to see this year’s regulatory plan and how the government plans to handle virtual digital assets (VDAs).
According to reports, at the top of the list of cryptocurrency experts in India is the need for changes in the classification and taxation of VDAs. Many experts are demanding that the government eliminates the 1% tax deduction at source (TDS).
Crypto analysts believe that TDS sets the Indian cryptocurrency industry backwards by hampering investor participation. They argue that it attracts capital losses with each trade, discouraging potential investors from entering the cryptocurrency market.
Rajagopal Menon, vice-president of WazirX, hopes that the finance ministry will reduce the TDS from 1% to 0.01%. Menon also wants offsetting of losses against realized gains to be allowed. According to him, the underlying goal is to ensure a level playing field in the cryptocurrency industry.
However, on the same topic, Sumit Gupta, co-founder of CoinDCX, noted that the upcoming budget presents a critical opportunity to spur the growth of India’s thriving VDA sector. According to Gupta, lowering the TDS rate from 1% to 0.01% would undoubtedly reinvigorate the sector. He also believes that aligning the tax rate with the framework applicable to other assets by reducing it from 30% would have a positive impact on the sector.
Furthermore, Gupta has proposed the establishment of a robust self-regulatory body for the Indian cryptocurrency and blockchain sector. He believes it’s a move that would revolutionize the industry for the better.
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