“India’s Crypto Tax Policy Unchanged in Budget 2024”

India’s latest budget announcement has left the cryptocurrency sector in a familiar state of discontent. Finance Minister Nirmala Sitharaman, in her recent parliamentary address, confirmed the persistence of the existing tax regimen on cryptocurrency transactions, consisting of a 1% tax deducted at source (TDS) and a 30% tax on profits. This decision comes amid significant anticipation and lobbying from the Indian crypto community for more favorable tax treatment.

The crypto industry’s plea for a reduction in the TDS to a mere 0.01% has been a constant since the tax’s inception two years ago. Advocates argue that the high tax rate has driven millions of traders to offshore platforms, significantly impacting the domestic market and resulting in substantial revenue losses for the government.

Moreover, the budget’s timing, closely preceding the nation’s general elections, further dampened hopes for any radical fiscal policy changes. The government’s stance appears to be a calculated one, with the full budget expected post-election, possibly opening doors for future amendments.

This unyielding position has placed Indian crypto exchanges in a precarious situation, with many struggling to navigate the operational challenges posed by the tax structure. However, recent measures against offshore exchanges have seen a resurgence in activity on domestic platforms, suggesting a complex interplay of policy, market dynamics, and regulatory enforcement in India’s evolving crypto landscape.

_{Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.}