Budget 2024: Crypto investors and exchange owners seek tax cut to revive ailing industry

Shivam Thakral, CEO of BuyUcoin, has a similar expectation from the Budget.  He says that the Indian crypto industry stands between boundless potential and frustrating limbo. He urges the government to replace uncertainty with clarity, not with a heavy hand but with a guiding light. “A well-defined legal framework can unlock trust and fuel growth. This framework should address taxation complexities, establishing clear guidelines for income and transactions, not as barriers but stepping stones. Exchange licensing protocols should not be shackles but a badge of honour, ensuring responsible participation.”

Pitching for cut in TDS rate, Sumit Gupta, co-founder, CoinDCX, says, “A strategic focus on significant measures, such as lowering the TDS rate from 1% to 0.01% and aligning the tax rate with the framework applicable to other assets by reducing it from 30% will undoubtedly invigorate the crypto sector. We urge the government to expand the scope of TDS mandate to explicitly include offshore platforms.”

Ashish Singhal, co-founder and group CEO, PeepalCo, a parent company of CoinSwitch, says, “While the industry welcomed the definition and inclusion of VDAs in the Income Tax Act, certain provisions, such as the high TDS rate and the lack of offset, have led many Indian VDA users to move to non-compliant foreign exchanges to trade. They are putting themselves at risk of losing their investment and breaking the law. It also led to lesser tax revenues for the exchequer.”