Industry leaders have outlined their expectations for Budget 2024:
Edul Patel, CEO, Mudrex
We anticipate that the newly formed government will address the critical challenges faced by crypto investors in India. Specifically, 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 favorable environment, encouraging innovation and growth within the sector.
Dilip Chenoy, Chairman, Bharat Web3 Association
The Indian Finance Ministry invited the BWA to pre-budget consultations. We presented our demands and expectations, including a key request for a reduction in the transaction tax from its current 1% to 0.01%.
We also requested the Finance Ministry to allow the setting off of losses on one VDA transaction against profits on other transactions. We advocated for the government to consider income from the transfer of assets on par with other income sources.We urge the government to implement clear, industry-friendly regulations, and tax reforms that allow this emerging sector to flourish 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 India’s virtual digital asset (VDA) sector – primarily around taxation. As part of several other jurisdictions that we operate in as licensed and regulated custody service providers, we see regulators encouraging the growth of this nascent sector and we feel India’s economy can tremendously benefit by rationalizing taxation for digital assets.
Shivam Thakral, CEO of BuyUcoin
We expect the upcoming budget to address our grievances and reduce the TDS and capital gains taxes on VDA transactions to reasonable levels, allowing us a level playing field to function and prosper.
We strongly advocate for 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, fostering fair and unhindered operation.
Rajagopal Menon, Vice President, WazirX
The crypto industry is hopeful that the FM will remove or reduce the 1% TDS, allow set-offs for losses, and tax capital gains based on income slabs.
As India is a signatory to the G20 ministerial declaration, we can anticipate crypto regulations by 2025. We hope that regulations will be in the Goldilocks zone — neither too stringent nor too lenient, thus fostering a conducive environment for the industry.
Sumit Gupta, co-founder, CoinDCX
CoinDCX has submitted its requests and recommendations to the Government of India and was also part of the BWA delegation that met with Finance Ministry officials as part of pre-budget consultations. Our key asks include:
To ensure a level playing field for the Indian VDA Industry vis-a-vis the offshore counterparts, we urge the government to expand the scope of the TDS mandate to explicitly include offshore platforms.
Additionally, we advocate for a reduction in the TDS rate under Section 194S(1) from 1% to 0.01%, emphasizing the necessity of a tax-friendly environment to stimulate industry development.
In pursuit of equitable taxation, we propose an amendment to Section 115BBH to reduce the tax rate from 30%, at par with assets in other industries.
Further, we recommend revisiting 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 coherence with the provisions in Section 194-O of the Act.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)
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