Reserve

Bank

April

WazirX

<a href="https://bitcoinworld.co.in/india-maintains-high-crypto-tax-rate-despite-industry-pressure/" title="India Maintains 1% Crypto Tax Rate Despite Industry Pressure" rel="nofollow"></a>
<ul> 
 <li style="font-weight: 400">India’s budget retains 1% crypto TDS, rejecting industry calls for a 0.01% tax rate and progressive taxation on gains.</li> 
</ul> 
India has decided to uphold its existing crypto tax regulations for the 2024/25 fiscal year despite ongoing appeals from industry leaders for a reduction in the current rates. 
Finance Minister Nirmala Sitharaman confirmed <a href="https://www.thehindu.com/business/budget/budget-2024-live-updates-nirmala-sitharaman-union-budget-highlights/article68433121.ece">this</a> decision during her budget presentation on Tuesday for the 2024/25 fiscal year. 
<h3 id="span-style-font-weight-400-india-s-latest-budget-keeps-1-crypto-tds-span">India’s Latest Budget Keeps 1% Crypto TDS</h3> 
India’s latest budget presentation comes five months after the interim budget maintained the 1% tax deducted at source (TDS) rate for crypto transactions, a rule established in April 2022. 
This regulation led to a significant decline in trade volumes in the Indian crypto industry. 
It then prompted industry representatives to advocate for a reduction in the TDS rate to 0.01% and the introduction of progressive taxation on gains. They also called for the ability to offset losses against gains for a more equitable tax system. 
Despite these appeals, the recent budget presentation indicates no change to the 1% TDS rate or the flat 30% income tax on crypto earnings.&nbsp; 
Additionally, the long-term capital gains tax increased from 10% to 12.5%, and the short-term capital gains tax rose from 15% to 20%. 
While the impact of these changes on crypto trading is still uncertain, the removal of the angel tax for all investors is seen as a positive development. This move is likely to attract more Web3 startups and grow India’s startup ecosystem. 
<h3 id="span-style-font-weight-400-indian-crypto-sector-faces-stringent-current-policies-span">Indian Crypto Sector Faces Stringent Current Policies</h3> 
It’s worth noting that Sitharaman was anticipated to uphold the current crypto tax rates, given the government’s numerous warnings about the risks associated with crypto trading. 
The Reserve Bank of India (RBI) has historically opposed cryptocurrencies. It banned financial institutions from servicing the crypto industry in 2018, a decision overturned by the Supreme Court in 2020. 
RBI’s May 2024 bulletin also reiterated the speculative nature of crypto assets and criticized decentralized finance (DeFi) for being driven by speculation rather than genuine economic transactions. 
Despite the stringent tax policies, the Indian crypto industry remains optimistic about future tax reductions, contingent on international developments such as other countries promoting crypto or legalizing it. 
India’s rigorous tax regime hasn’t hindered its global leadership in crypto adoption, as evidenced by topping Chainalysis’ 2023 Global Crypto Adoption Index. The local industry continues to push for tax reforms, hoping for a more favorable regulatory environment in the future. 
In the meantime, the recent election results and the $234.9 million hack of the crypto exchange WazirX may have pushed cryptocurrency regulation further down the government’s priority list.

India Maintains 1% Crypto Tax Rate Despite Industry Pressure

Table of Contents

ItsBitcoinWorld

دیگر آرٹیکلز 24 جولائی، 2024 پر پبلش کیے گئے ہیں

TapSwap Daily Code for 25 July 2024: A Tap-to-Earn Game

Kamala Harris Will Replace Biden in Presidential Race

PEPE to the moon? Thank Spot Ethereum ETFs if that happens!

New Memecoin Pepe Eats Solana Will Skyrocket 19,000% Before Exchange Listings, As SHIB and DOGE Lag

Tron Price (TRX) Targets New Gains: Is Another Increase Coming?

Caldera’s $15M Series A to Enhance Ethereum Rollup Solutions

Join our free newsletter for daily crypto updates!