2024

WazirX

The Finance Minister of India, Nirmala Sitharamn will be presenting Interim Budget 2024 on February 1. It will be, by definition, a vote on account. However, this major event has left <a href="https://news.todayq.com/rbi-chief-das-warns-of-crypto-mania-risks-while-us-approves-etfs/" target="_blank" rel="noopener noreferrer nofollow">Indian crypto investors</a> waiting for clear and specific regulations around the trading of Virtual digital assets. In a recent post, the WazirX CEO addressed concerns regarding Tax deductions and more. WazirX CEO advocates for Crypto Tax reforms 
Nischal Shetty, CEO of WazirX, highlighted the massive <a href="https://news.todayq.com/india-crypto-tax-outlook-rules-regulations-its-implications/" target="_blank" rel="noopener noreferrer nofollow">concerns regarding Tax</a> Deducted at Source (TDS) for crypto traders in India. As reported, TDS involves a 1% tax deduction each time an Indian trader sells their digital assets, with the deducted amount being deposited on behalf of the seller. While sellers can eventually claim a refund if they are not liable for income tax, high-frequency traders often face issues due to this process.
The problems highlighted by Shetty include unnecessary capital lock-in, an extended refund cycle, and the inability to trade during the period until the refund is received. He added that the continuous rotation of capital at a high rate for high-frequency traders results in substantial TDS deductions over time. This, in turn, leads to reduced income and lower income tax collections for the government.
Further, Shetty argues that the existing TDS system hurts both traders and the tax department. Traders face capital constraints and reduced income, while the government experiences lower tax collections from high-frequency traders. However, he suggests that reducing the TDS rate to 0.01% or eliminating it altogether could potentially boost income tax collections. What are Indian crypto community’s expectation? 
The Indian crypto community has actively advocated for reducing crypto tax in the country. It highlights the need for changes in regulatory directions that negatively impact the Web3 industry. WazirX CEO encourages persistence in these efforts, stressing the importance of continuously spreading information about the three proposed changes:
He suggests that lowering TDS to 0.01% while allowing loss set-off will help the Indian crypto community.
Indian crypto players are urging the government to slash tax rates on crypto assets in the upcoming Union Budget. They specifically request the inclusion of offshore crypto platforms under the TDS mandate and treating income from VDAs at par with capital assets.
The current stringent tax norms, imposed in February 2022, have allegedly driven Indian crypto users to migrate to non-compliant foreign exchanges, posing risks to their investments. The upcoming Union Budget in 2024 is anticipated to address these concerns.
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Crypto Tax concerns echo in India ahead of Interim Budget 2024

Todayq News

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