India's 2024-2025 Budget: Implications for the Crypto Industry
India has been the historical event of that country which has been very skeptical about cryptocurrencies as well as the entire Industry that is related to it but at the same time it has been one of the most flourishing communities in the Crypto industry for sure in the entire world and the number of users over here is massive which is making the user base one of the biggest in the entire world but at the same time the government is not that much interested in regulating the market in a man which is going to be effective for the people who are involved but at the same time they are putting in a lot of such rules which is making it difficult for traders to be existing in the market.
Right from the start there has been a lot of demand from the central bank of the country to be banning cryptocurrencies as a whole in the entire nation because they were a threat to the national economy as well as the stability that is needed for the finances in the nation but that wasn't something that got through but at the same time cryptocurrency is never got legalized as well by the government it has been in the middle of both of the waters from the start itself.
There were a lot of taxes that were implemented in the cryptocurrency field that were directed towards making sure that people are going to be more accountable for all of the reactions in this particular sector but they were designed in such a man that to be something that was a way that government can be used to collect more taxes rather than be of any use. One of the most Prime examples of this has to be the TDS which is something that the government aims to be as a way with which they can be tracking every transaction but even then it is said to be at 1% for every transaction.
A couple of days ago it was the budget Day in India where the nation's budget for the entire 2024-2025 period was discussed there were Expectations that there would be a lot of changes in the cryptocurrency field for sure but everyone was disheartened when that didn't happen. There have been a lot of mixed signals from the Government of India about cryptocurrencies and every field that is related to it because in a lot of meetings, they have promoted it like they are very much interested in developing that field in the country but at the same time there have been also a lot of such examples which portray their negative stars towards the field.
For this budget, one of the prime demands that everyone had was to reduce the controversial TDS on Crypto transactions which is presently at 1% to somewhere such as 0.01% which is also going to be making sure that the task that it is required to be full filling is full field and also going to be providing respite to the traders as well because detecting one person at every single transaction that is made is quite big and unnecessary as well along with the fact that there will be a lot of things that will be made in such a manner which will be in the favour of people who are involved in the Crypto sector.
A lot of relaxation in the Framework for cryptocurrency was expected in this budget but there was complete silence and no announcement about this particular sector from the side of government which also does portray the again negative stands of the government towards the sector which is something that you is putting a lot of pressure on people who are involved in the sector and are been forced to be using some other options and also moving out of the nation or leaving the crypto sector.
The government has announced that it is going to be increasing the long-term capital tax gain from 10% to 12.5 along with the fact that there also going to be an increase in the short-term capital gains tax which was presently at 15 and that is going to be increased to 20% and there has been no clarity which has been given that these are going to be impacting the games that are made in the Crypto sector as well because they are targeting it was the stock market and there has been no such announcement that these are going to be the same rules for the crypto sector as well.
The Crypto sector is taxed at a flat 30% and there is no option that the losses that are made in the Crypto sector can be set off against the gains which is possible in traditional asset markets such as security as well and that is also a massive disadvantage for crypt to traders in India as well which is also putting a lot of people of the grid and winning them to be moving out of the market as well.
Well, one of the positive things that have come out of this budget is going to be the abolishment of the Angel tax for every class of investors in the country which will help the startups for sure which are going to be flourishing quite a lot in India after this because the web 3 aspect in India is something that is growing at a very rapid pace and the potential that India has for web 3 talent is huge and allotment of this Angel tax will be helping the startups to make their base in India pretty easily as well.
All in all, it is very disheartening to see that the government of India is not using the proper potential that India has within the Crypto domain itself as well as the huge market opportunity that it has to be using along with the fact that there is a big pool of talent as well which is in the same domain as well and all of these things are not being need to lies in the man and that they could have had given the proper contribution to the national economy as well.
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Sayu
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