On February 1, 2024, India’s Finance Minister Nirmala Sitharaman will deliver the budget for 2024–2025. Before the country embarks on the Lok Sabha elections, this is the final budget session. The nation’s Web3 community, for example, has made its demands known. The community wants tax breaks for things related to cryptocurrencies.
This means carrying forward losses, reducing TDS from 1% to 0.01%, and having adjustable tax slabs. As a result, the Web3 community and #ReduceCryptoTax have started a trend. The community claims that although the government has been aware of their demands for the past two years, it has not taken any action. On the other hand, the government claims to be creating new laws and guidelines that will protect the sector from being taken advantage of and ensure the safety of inventors.
However, the Web3 group in India remains fixated on having their demands fulfilled. Sitharaman or any of her department’s representatives have not left any clues. Not until February 1, 2024, will the community accept the pertinent information.
It’s not like the hashtag is taking off. The fact that a greater number of the posts on X had fewer than 10,000 views at the time this article was written makes this clear. For example, the Chief Executive Officer of Unocoin, Dr. Sathvik Vishwanath, has only 2,343 views on one of his posts. At 8:47 a.m. IST on January 27, 2024, he had published his message.
Other advocates for cryptocurrency, Trading Career, and Crypto with Khan, have received approximately 7,344 and 836 views, respectively, since their posts were first published on January 21, 2024, and January 24, 2024, in that same sequence. Their approaches to releasing posters and utilizing hashtags are comparable.
Sathvik expresses his demands outspokenly. He stated that the community has already been under tremendous strain from taxes for 724 days and that legislators and regulators need to ensure that there is a regular balance between taxes, innovation, and future global prospects.
Trade, Purchase, and Deposit are all included in TDS for cryptocurrency transactions. A 30% tax on cryptocurrency gains is also due to holders of cryptocurrency.
The Web3 community in India has grounded its case in the observation that high taxes deter citizens from engaging in cryptocurrency-related activities. Furthermore, they claim that the majority of operations are moving to offshore platforms. More precisely, the data from the Esya Centre states that over 90% of Indian VDA trade volume is attributed to offshore platforms. That means that, between July 2022 and July 2023, almost ₹350,000 crores will be involved.
The Reserve Bank of India, or RBI, has issued warnings over the repercussions of integrating cryptocurrency-related activities into the nation’s financial system. It can be as a result of ongoing volatility and risks to investors’ finances.
