Indian Crypto Users Rally for Fairer Taxation with #ReduceCryptoTax Trend

As India anticipates the Interim Budget 2024-25, set for presentation on Feb. 1, the hashtag "#ReduceCryptoTax" gains traction on social media, echoing the cryptocurrency community's call for more equitable taxation.

Tax Slab and TDS Demands

Indian crypto advocates are pushing for revisions in the current tax laws, pointing out that the existing 30% tax slab for cryptocurrencies exceeds that of other income sources. A specific demand focuses on reducing the Tax Deducted at Source (TDS) on crypto transactions from the current 1% to a minimal 0.01%.

Cautious Approach by Stock Exchanges

Indian stock exchanges remain cautious about venturing into crypto brokerage services, citing concerns about the perceived risks associated with the nascent crypto sector.

Expert Opinions: Limited Changes Expected

Behavioral Finance and Capital Markets expert Siddartha Rastogi predicts minimal changes, emphasizing concerns about potential illicit money movements facilitated by relaxed tax policies. With the interim budget covering a short three-month period, major adjustments seem unlikely.

Katalyst Advisors' Executive Director Binoy Parikh concurs, foreseeing limited changes on the tax front during the interim budget. He suggests rationalizing withholding tax provisions to boost crypto market volumes.

Crypto Community Voices Concerns

Dr. Sathvik Vishwanath, CEO and Co-Founder of Unocoin, highlights the detrimental impact of unfair taxation on India's crypto industry. He emphasizes the need for amended taxation laws to enhance the country's competitiveness in the global landscape.

SmartViewAi YouTuber Pushpendra Singh criticizes India's crypto taxation, calling it the worst globally, with a 1% tax deducted service, 30% tax, no loss set off, and no banking support. The community echoes the sentiment, with many considering relocating due to unfavorable tax policies.

Hopes for Budget Revolution

Crypto influencer Keyur Rohit outlines the expectations of the crypto sector in India's 2024 budget. He emphasizes the potential game-changing impact of a well-defined legal framework and the regularization of the tax structure. Advocacy includes the removal of the 1% TDS and proposals to allow users to offset losses related to digital assets.

Uncertain Tax Revisions Amidst Crypto Community's Plea

As the crypto community in India rallies for #ReduceCryptoTax, experts predict limited changes in the interim budget. Concerns about potential misuse of relaxed tax policies and the interim nature of the budget contribute to expectations of cautious adjustments in the cryptocurrency taxation landscape.