Budget 2024: Crypto industry players want 1% TDS to be slashed; full-fledged regulatory framework in place

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Notwithstanding an arguably bad year that cryptocurrency players have left behind in 2023, this New Year has kicked off on an optimistic note with a massive surge in bitcoin’s prices and much-awaited approval to spot bitcoin ETF by US regulator SEC.  The landmark move has led to a spike in bitcoin prices, which topped $47,000. 

Now that the entire industry is eagerly awaiting the interim Union Budget 2024, they look forward to a reduction of tax rates on crypto transactions and a regulatory framework. 

It is vital to recall that the Finance Ministry in 2022 introduced one percent TDS on crypto transactions and 30 percent tax on capital gains that accrued on the sale of cryptocurrencies. That led to a massive fall in transaction volumes and now, the industry representatives have been urging the authorities to slash the rates in the forthcoming Budget 2024, if not roll back completely. 

Let us hear it directly from the horse’s mouth.

Shivam Thakral, CEO of BuyUcoin, believes that the Indian crypto industry is perched between potential and current limbo, and the need of the hour is a well-defined legal framework. 

“The Indian crypto industry stands between boundless potential and frustrating limbo. In the upcoming budget, we urge the government to replace uncertainty with clarity, not with a heavy hand but with a guiding light. A well-defined legal framework should address taxation complexities, establishing clear guidelines for income and transactions, not as barriers but as stepping stones," says Thakral. 

He also urges for an integration of cryptos with traditional finance. “Seamless integration with traditional finance is possible by fostering collaboration and driving mainstream adoption. We understand the need for investor