Crypto or virtual digital assets remained conspicuously absent from the speech of Indian Finance Minister Nirmala Sitharaman on Tuesday during the annual budget 2024-25 announcement.
In her recent budget announcement for 2024-2025, India’s Finance Minister Nirmala Sitharaman chose to maintain the current crypto tax regulations. This decision, made on Tuesday, leaves the tax-deducted-at-source (TDS) rate for cryptocurrency transactions unchanged at 1% and 30% tax against income on virtual digital assets. Industry advocates had urged for a drastic reduction to 0.01%, presenting evidence from think tank studies to bolster their case.
The crypto sector had also called for a shift from the flat 30% tax on gains to a progressive tax system, which would allow losses to offset gains. Additionally, there were pleas for a multi-agency regulatory framework to better manage the sector’s complexities.
This budget marks the first since Prime Minister Narendra Modi’s re-election for a third term. However, with Modi’s Bharatiya Janata Party (BJP) falling short of a majority, a coalition government has emerged, bringing new dynamics to policy-making.
Observers view this budget as a strategic blueprint for Modi’s vision over the next five years, reflecting the sentiments from a surprising election outcome. As India navigates this coalition era, the impact on the crypto industry remains a key area to watch.
Also Read: India’s Budget Likely to Maintain Current Crypto Tax Rates
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