India Prepares to Unveil Union Budget 2024
India is set to reveal its Union Budget for 2024 on February 1, and the crypto community in the country is hopeful for a significant tax reduction. Rajagopal Menon of WazirX has expressed the community’s desire for a decrease in the Tax Deducted at Source (TDS) rate from 1% to 0.01%. The Bharat Web3 Association (BWA), representing India’s crypto and web3 sectors, has also called for tax reductions and regulatory changes in the crypto industry.
BWA Advocates for Tax Reduction
The BWA has demanded not only a reduction in the TDS rate but also the inclusion of foreign exchanges under the TDS umbrella and a reassessment of the flat 30% tax rate on crypto income. Menon further emphasized the need to allow offsetting of losses against gains to create a level playing field in the cryptocurrency space.
India’s Cryptocurrency Market and Offshore Traffic
Despite being the world’s second-largest cryptocurrency market in terms of transaction volume, India’s heavy tax burden has led to over 90% of crypto exchange traffic going offshore. The adoption of cryptocurrencies in India has been significant, but high taxes have hindered growth.
Community Outcry and Social Media Response
The recent restrictions on accessing foreign exchanges like Binance domestically have sparked outrage within the crypto community. Users are demanding a say in how their taxes are spent and are calling for reduced taxation and a more supportive tax environment for tech investments. Social media platforms have become a platform for expressing frustration with India’s stringent tax regime.
Hot Take: India Must Recalibrate Its Tax Strategy
As India prepares to unveil its Union Budget for 2024, the crypto community is making it clear that the country needs to rethink its tax strategy. High taxes without corresponding services are seen as unjust, and the community is calling for fewer restrictions and a more supportive tax environment to nurture the digital asset sector.
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