- Tax Reform: The industry is demanding a reduction in TDS rates to strengthen competitiveness.
- Strategic Action: Establish self-regulatory bodies and adjust tax rates for growth and clarity in the sector.
As India prepares for its 2024 federal budget, the country’s cryptocurrency industry is gearing up for potential reforms in taxes, regulatory framework and strategic initiatives aimed at fostering growth. Leading figures in the cryptocurrency industry are expressing the need to adjust existing tax regulations to strengthen industry competitiveness and user adoption.
Tax reform in focus
Co-founder Nischal Shetty WazirX And Shardeum emphasized the urgent need for changes in taxation, noting in particular: high taxes Deducted at the rate of 1% TDS. Defending the reduction to 0.01%, Shetty believes the adjustment will not only bring India in line with global standards but also facilitate digital asset trading within the country’s jurisdiction. The difference in TDS rates puts India at a disadvantage compared to countries like the US and the European Union.
Regulatory clarity and stability
Shetty further emphasized the importance of specific domestic regulations tailored to India, emphasizing the need for stability within the industry. He urged the government to consider strategic measures in line with the dynamic nature of the cryptocurrency sector, calling for allocating funds to domestic blockchain projects that demonstrate real-world utility and innovation.
Also Read: Google removes crypto app from India amid regulatory probe.
Tax Code Troubleshooting
Ashish Singhal CEO Coin switch, reflecting concerns about a downturn due to certain provisions of the Income Tax Act related to virtual digital assets (VDAs). Singhal emphasized the need for continuous updates to the Indian tax code to accommodate the evolving nature of the cryptocurrency sector. He advocated a forward-looking approach to applying rules that could keep pace with rapid changes in the industry.
Strategic Initiatives for Growth
Sumit Gupta, co-founder of CoinDCX, suggested not only reducing the TDS rate but also reducing the tax rate from 30% to bring it in line with other asset classes. Gupta also recommended the establishment of a self-regulatory body for the cryptocurrency and blockchain sectors. He sees this as a proactive step that aligns with the government’s ‘Digital India’ vision and positions India as a global player in the web3 and blockchain narrative.
Prime Minister Gupta expressed optimism that a standardized regulatory framework and strategic measures could accelerate India’s journey towards achieving its ambitious $5 trillion economic target.
conclusion
The cryptocurrency industry in India is holding its breath in anticipation of favorable changes in taxation, regulatory framework and strategic initiatives in the 2024 Union Budget. The sector aims to partner with global competitors to unlock growth opportunities and position India as a prominent player on the global stage. . As the industry watches global developments, it remains optimistic about the potential for positive change to spur domestic growth.