Shourya Jha
Union Budget 2023 India Expectation Live Updates: Finance Minister Nirmala Sitaraman will be presenting the Union Budget 2023 on February 1. Last year when the budget came, probably no one expected a hefty tax of 30% on all income from cryptocurrencies. Last year, the Finance Minister further declared that losses from one cryptocurrency asset cannot be compensated by gains from another cryptocurrency asset. A high TDS rate of 1% was also imposed and was applicable from July. A study showed that over 32,000 crore worth of crypto trading had shifted to foreign exchanges from domestic ones between the month of July to October 2022, probably as a result of high TDS. The crypto community is expecting reforms in these areas by the FM. The taxation on VDAs is also expected to get some clarity.
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2023-01-24T13:38:00+5:30
The Tax Reforms Being Expected From Budget 2023
While talking to us about the tax reforms that the crypto community expects, Punit Agarwal, Founder of KoinX said,
“2022 has been a rather interesting year for the crypto industry and the global economic sector in general. But 2023 seems promising for web 3, crypto, and Blockchain startups.
The major focus of the upcoming budget seems on preserving the financial integrity of crypto traders and investors. The government is focusing more on preventing illegal activities related to VDAs, which suggests that the upcoming budget won’t really give enough relaxation to the current crypto taxes.
The upcoming budget is also expected to give us more clarification on the classification and taxation of VDAs. We might also see more use cases and deployments for crypto in the Indian financial ecosystem, especially with the introduction of the Digital Rupee.”
2023-01-24T12:57:00+5:30
Crypto Expert Comments On Reducing TDS
While speaking to the Economic Times about the heavy tax on crypto and the shift to foreign exchanges, Avinash Shekhar, the founder and CEO of TaxNodes said,
“We expect the government to reconsider the current putative tax structure [for crypto] and bring it at par with other normal business activities. This will bring more transparency by enabling Indian crypto traders to trade on Indian exchanges rather than going to Peer to Peer and foreign exchanges. This will also encourage innovators and entrepreneurs to build this most innovative technology of our times, from India rather than from outside India.”
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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