Netizens Rally for Change in India’s Crypto Tax Law
With India’s Union Budget 2024 announcement approaching, the web3 community in India is calling for revisions to cryptocurrency tax regulations. Despite previous appeals, the Indian government has not addressed these laws, which many argue hinder crypto growth and lead to talent leaving for more crypto-friendly countries.
Social Media Campaign for #ReduceCryptoTax
The Indian crypto community is using the hashtag #ReduceCryptoTax on social media platforms to advocate for changes ahead of the budget provisions announcement. They are demanding more flexible tax slabs, a reduction in Tax Deducted at Source (TDS) from 1% to 0.01% on each crypto transaction, and the ability to carry forward losses, similar to practices in the stock market.
Criticism of India’s Crypto Tax System
Pushpendra Singh, Co-Founder of SmartViewAi in India, described the country’s crypto tax system as the “worst” globally. Singh highlighted the 1% TDS and 30% crypto tax slab, along with no loss set off and lack of banking support, as major issues that position India’s tax regime unfavorably compared to other countries.
Unfairness of Crypto Tax Regime
Dr Sathvik Vishwanath, CEO and Co-Founder of Unocoin, criticized India’s crypto tax regime as “unfair.” He called for amendments to the taxation laws, stating that unfair taxation not only hinders the crypto industry but also slows down progress and competitiveness on a global scale.
Additional Changes Requested by Web3 Community
The web3 community in India is seeking several other changes to the crypto law. This includes establishing a clear legal framework and tax regulations, redefining Virtual Digital Assets (VDAs) with exclusions for tokenized assets with proven underlying value, and promoting innovation and research in the digital asset space. They also want to encourage Web3 startups through special economic zones and implement tax incentives and sandboxes to stimulate growth.
Hot Take: India Needs Crypto-Friendly Tax Reforms for Growth
The Indian web3 community is urging the government to make significant changes to crypto tax regulations in order to foster growth in the sector. The demands include more flexible tax slabs, reduced TDS on crypto transactions, and the ability to carry forward losses. Criticisms of the current tax system highlight its unfavorable position globally and its hindrance to the competitiveness of India’s crypto industry. Furthermore, the community is calling for a clear legal framework, recognition of the potential of real-world asset tokenization, and support for Web3 startups through special economic zones. These reforms are seen as essential for India’s transition into an advanced blockchain industry integrated with AI and other technologies.
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