The government is set to present the union budget for the next financial year on February 1. Policy and taxation that they are hoping to see during the coming year. In addition to calling for revised Crypto Tax Rates, Crypto Firms have Urged the Government to Prioritise Measures that Ensure India Remains Competitive With Other Countryes, Particularly in the Realm of Emerging IES.
Introduction of Crypto regulation
Neither India Nor the US has formulated rules or regulations to govern the burgeoning crypto sector. Leaders of Crypto Firms Claim that India has a unique Opportunity to Launch it is a business-for-boxchain hub with one of the largest pools of developers in the world.
“The US will take aggressive strides in crypto regulation. India, In the Coming Budget, Should Talk About Priorizing Investments to Improve our digital infrastructure, Expand Blockchain Research, and Introduce Clear Policies to Regule E Blockchain, Crypto, and Artificial Intelligence (AI), “Unocoin Co-Founder Sathvik Vishwanath Told Gadgets 360.
Vishwanath also said that if the government aligns its approach on web3 with global trends and focuses on digital asset innovation, the country will be competible with other nations Ogies.
In the US, the Securities and Exchange Commission (Sec) has set up a special task force to accelerate work on Crypto-Regislative Legislation. The UK plans to finalize its crypto rules by 2026. India, mean, does not have any specific timeline by which it is likely to get its comprehensive crypto rules.
Tax reforms
Cryptocurrency earnings are taxed at 30 percent in India, and a one percent tax deduted at source (TDS) is Levied on Each Transaction. The government introduced these taxes on April 1, 2022. The crypto sector has reepeated the authorities to revise and reduce these tax rates to help the sector.
“Currently, High Taxes and TDS Law in India Have Pushed Investments Pouring Into The Web3 Sector to Other Countries like the uae. This has led to domestic innovation being hindred. Budget 2025 must come with tax rate revisions and permission for lossests, “said sonu jain, Chief Risk and Compliance Officer at 9Point Capital.
Last Year, Finance Minister Nirmala Sitharaman Announced The Abolishment of Angel Tax for all classes of investors. This Rule Levied Taxes on Investments from Wealthy Individuals Who Por Pour their own capital into Startup Businesses. It is worth noting that last year Budget Speech Did Not Include Any Ments of Crypto or Blockchain.
“If the Finance Minister focuses on Smart Taxes Rules and Blockchain Development, It Cold Have A Big IMPACT on India's's Global Position in the Crypto Sector, Wholy Aid Thangapandi Durai, CEO of Madurai, Tamil Nadu- Based koinpark crypto exchange.