G20’s Impact on Crypto Tax Reforms
While India continues its preparations Union Budget 2024The crypto community is awaiting potential policy changes that could help the industry thrive. This year’s budget has taken on additional importance in light of India’s recent policies. G20 presidencyWhere the crypto sector emerged as an important topic.
Industry executives recommend changes, this time with more advantageous tax treatments for virtual digital assets (VDAs), to ensure the industry’s expansion and compliance with global standards.
Crypto industry is hopeful
ZebPay CEO Rahul Pagidipati expressed optimism about the budget, highlighting the need for a regulatory framework that will help the crypto market.
Pagidipati said, “Given the positive steps taken in the discussions at the G20 summit, we believe that establishing a regulatory framework is vital. “These developments, especially in reducing TDS and capital gains taxes, will encourage more inclusive participation in the crypto market.”
He believes that a supportive regulatory environment is crucial to encouraging innovation and integrating blockchain technology into existing businesses. He says this will not only create new solutions but also ensure sustainable growth of the crypto industry.
The executive added: “We remain hopeful for a budget that recognizes the dynamic nature of the sector and provides the necessary impetus for its continued positive trajectory into the year ahead.”
Implementing taxes to increase revenue
Ashish Singhal, co-founder and CEO of crypto exchange CoinSwitch, thinks about introducing tax provisions for VDA in Budget 2022. While the inclusion of VDAs in the Income Tax Act is a welcome move, some of the provisions are unintentional, he notes. results.
The exchange chief stated that high TDS rates and lack of recovery of losses are pushing Indian VDA users towards non-compliant currencies. He stated that he believed that this posed a risk for his investments and potential legal problems, adding: “This also led to a decrease in the tax revenues of the exchequer.”
CoinSwitch, a Financial Intelligence Unit-registered platform that complies with India’s KYC and PMLA rules, has urged the government to consider reducing TDS on VDAs from 1% to 0.01%. Additionally, the exchange called for allowing VDA sale losses to be offset and carried forward, and for VDA income treatment to be aligned with other capital assets.
“The Government of India has shown commendable leadership at the G20 in arriving at a roadmap for a global crypto framework and has implemented domestic regulatory frameworks, such as anti-money laundering, in line with global standards,” Singhal said.
He also added that reviewing tax treatment would reduce tax arbitrage, capital flight, consumers, investments and talent.
So read: Union Budget 2024: Crypto Expectations and Announcements
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Shraddha’s professional journey spans more than five years; During this time, he worked as a financial journalist, providing information about the business world, markets and cryptocurrencies. As a reporter, he placed particular emphasis on learning about market interaction with emerging technologies.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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