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Indian Finance Minister Nirmala Sitharaman is to present the fifth budget in Parliament today. India’s crypto community hopes to see relief on 30% capital gains tax and an additional 1% TDS (tax deducted at source) on profits from crypto assets introduced last year.
The crypto market is trading positively with over a 1% increase ahead of the Union Budget 2023. Top cryptocurrencies, Bitcoin and Ethereum prices are trading at $23,150 and $1,584, up over 1% in the last 24 hours.
Indian stock market indexes Sensex and Nifty 50 opens in green, rising nearly 1% in early trade. However, futures linked to U.S. stock indexes are trading in red ahead of the Fed rate hike decision today.
What’s There For The Crypto Community
India’s Finance Minister Nirmala Sitharaman is expected to change the tax structure, bringing a new tax slab in her fifth budget in Parliament. However, the government may not revise the tax policy on cryptocurrencies this budget year, keeping the community confused over its stance on crypto adoption in India.
India has witnessed a massive decline in crypto trading volumes, despite an increase in crypto adoption. India-based crypto exchanges have urged the government to reduce the tax burden and TDS to 0.1%. However, experts believe the crypto taxes need a lot more clarity and no new changes are expected in the budget 2023.
The government can announce its take on CBDC, web 3.0, and the recently implemented e-Rupee. India is likely to push for a global common standard for regulating the crypto ecosystem.
“The geographically pervasive nature of the crypto ecosystem necessitates a common approach to the regulation of these volatile instruments.”
The Economic Survey 2022–2023 highlighted concerns about the lack of regulation. The government is taking a cautious approach to regulating crypto following the collapse of the crypto exchange FTX.
Worse Expected for the Crypto Market?
While the government is unlikely to announce a pro-crypto budget, some believe the government may increase oversight on crypto.
Global central banks are to announce their rate hikes this week and the crypto market will remain volatile. Traders are awaiting the Fed pivot amid cooling inflation and strong jobs data. However, experts anticipate the pivot in May this year.
Also Read: Budget 2023 India: Tax Benefits For Salaried, Improved Crypto Tax Structure; 7 Key Points
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