Indian Crypto Community Awaits Budget 2024 with Hopes for Tax Reforms

Shraddha Sharma
January 18, 2024
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
India Reevaluating its Crypto Stance Amid Global Adoption and Policy Changes

India prepares to unveil its Union Budget for 2024 on February 1. Meanwhile, the domestic cryptocurrency sector is holding its breath for a significant tax cut.

Rajagopal Menon of WazirX has expressed the community’s hopes to CoinGape, advocating for a substantial decrease in the Tax Deducted at Source (TDS).

He said, “We hope that the finance ministry would reduce in the Tax Deducted at Source (TDS) rate from 1% to 0.01%.”

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BWA calls for tax reduction

The Bharat Web3 Association (BWA), representing India’s crypto and web3 sectors, echoed these sentiments last month. As reported by Moneycontrol, the association’s demands include not only the TDS rate reduction but also the inclusion of foreign exchanges under the TDS umbrella and a reassessment of the flat 30% tax rate on crypto income.

Menon added, “Additionally, the offsetting of losses against gains made should be allowed. The underlying objective is to ensure a level playing field in the cryptocurrency space, devoid of regulatory or tax arbitrage for any participant.”

India’s cryptocurrency market has been strengthened by adoption. It stands as the world’s second-largest in transaction volume, as per Chainalysis data cited by BWA. Despite this, India’s heavy tax burden has pushed over 90% of crypto exchange traffic offshore, as CoinDCX’s Sumit Gupta informed Moneycontrol.

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Community outcry on X

Further tightening the rules, India has recently made it difficult to access foreign exchanges like Binance domestically. CoinGape reported that the Apple app store recently removed at least four of these offshore exchanges. The clampdown comes amidst a community outcry. They want a say in how their taxes are spent, as voiced by users on X.

The community’s frustration is palpable, with calls for reduced taxation resonating across social media platforms. Users draw comparisons with the U.S., where recent moves to launch Bitcoin ETFs contrast with India’s stringent tax regime.

The sentiment is clear: high taxes without corresponding services are unjust, a sentiment echoed by @Bot17204, who, alongside others like @CryptoMechanism and @CennoCapital, call for fewer restrictions and a more supportive tax environment for burgeoning tech investments.

As the Union Budget 2024 looms, the collective voice of the crypto community is loud and clear—India must recalibrate its tax strategy to nurture the digital asset sector, not stifle it.

Also Read: India’s Crypto Regulation at Standstill: RBI Deputy Reappointed

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Shraddha's professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.