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="noopener noreferrer 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" rel="noopener noreferrer nofollow">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

目錄

ItsBitcoinWorld

在 2024年7月24日發表的其他文章

Hex Trust gets initial nod for payment institution license in Singapore

Exploring High Returns with Moonbag's 88% APY and Bitcoin Cash’s Resilient Performance

$1 Billion Ethereum Transfer Shocks Crypto Community. What’s Happening?

The Future of Legal Documents: How Law Blocks AI is Transforming Country-Specific Legal Solutions

Crypto Prices Today July 24: Bitcoin Slips To $65K, ETH, SOl, & XRP Mimic Fall

Ripple Aims to Lead In Digital Asset Infrastructure For Financial Services

訂閱免費電子報，每天收取加密貨幣最新動態！