As the Union Budget 2025 approaches, India’s crypto industry anticipates tax reforms to enhance growth. Industry leaders are pushing for a reduction in the TDS rate, loss offsetting options, and lower taxes on virtual digital assets to attract investors and encourage market participation. A more favorable regulatory environment could reshape India’s standing in the global crypto market.
As the Union Budget 2025 draws near, the cryptocurrency industry in India is eager for more favorable tax policies. Despite being a top nation for crypto adoption, high taxes from the 2022 budget—like a 1% TDS on transactions and restrictions on offsetting losses—remain a hurdle. Industry leaders are advocating for significant changes that could rejuvenate the sector, beneficially impacting both compliance and growth.
Key proposals from industry figures include reducing the TDS from 1% to 0.01%, enabling loss offsetting, and lowering the tax on virtual digital assets (VDAs). These reforms are seen as crucial to attracting investment back into India, helping to curb the trend of investors trading on foreign exchanges due to punitive tax measures. Edul Patel, CEO of Mudrex, emphasized that a more progressive strategy could stimulate market participation.
The Indian investment landscape is currently stifled by high taxation, causing local investors to miss global opportunities in the rising crypto market. Lowering taxes would empower investors to engage more with this lucrative sector, thus fostering financial innovation. According to Avinash Shekhar, CEO of Pi42, adjustments are necessary to create an equitable environment for crypto trading and investment.
2024 has witnessed remarkable advancements in cryptocurrency, with Bitcoin’s value soaring above $100K and increasing institutional involvement. Industry leaders argue that the upcoming budget must capitalize on this momentum by introducing forward-thinking policies that reaffirm India’s position in the evolving digital economy.
Vishal Sacheendran, Head of Markets at Binance, stated the importance of creating a balanced regulatory landscape to harness the full potential of the VDA sector. Such frameworks should encourage growth, maintain transparency, and protect investors, imploring policymakers to engage with industry experts for effective regulation.
Raj Karkara, COO of ZebPay, insists that aligning India’s crypto rules with international standards is vital. He calls for revisions to the current tax rates and TDS structure to promote wider participation and enhance market liquidity. Recognizing crypto formally as an asset class is essential for nurturing this sector.
With the Union Budget 2025 imminent, the Indian cryptocurrency industry earnestly seeks tax reforms to remedy the setbacks from 2022 and set the stage for progressive growth.
The upcoming Union Budget 2025 is a focal point for the cryptocurrency industry in India, which is grappling with challenges from previous tax regulations implemented in the 2022 budget. These regulations have included a high tax on crypto income and imposed a transaction tax that has driven many investors away to foreign exchanges. Leaders in the industry are pushing for tax reforms aimed at revitalizing this burgeoning sector, citing that changes could lead to greater investment and enhanced growth opportunities. The current climate calls for a reevaluation of tax strategies to keep pace with global trends and foster innovation in the Indian market.
In summary, the Indian cryptocurrency sector hopes for substantial tax reforms in the Union Budget 2025 to alleviate the burdens imposed by the previous year’s regulations. Key leaders advocate for measures such as reducing the TDS and allowing loss offsets to foster a more favorable investment climate. The industry is at a crossroads, and these changes could be pivotal in propelling India to the forefront of the global crypto landscape.
Original Source: www.livemint.com
