Budget 2024: Crypto Community Disappoints; India Hikes Capital Gains Tax
The Indian Budget 2024, presented by Indian Finance Minister Nirmala Sitharaman, has left the crypto community high and dry. Today, July 23, the presented budget offered no tax reductions or eases to the VDA (Virtual Digital Assets) sector. Meanwhile, the nation’s stock market faced a setback with increased taxes on long-term capital gains.
Nevertheless, the crypto community remains optimistic about future prospects, as also spotlighted by CoinDCX CEO Sumit Gupta.
Budget 2024: Tax Ease For The Crypto Sector?
Notably, the first Indian budget presented under the newly elected NDA government led by Narendra Modi has skipped mentioning crypto or VDA. The speech, nearly 1.5 hrs long, has nonetheless offered some relief to the emerging Web3 sector.
As per the Indian FM’s speech, ‘Angel Tax’ is to be abolished nationwide. This paves the way for rising early-stage Web3 companies, offering seamless seeding opportunities.
Meanwhile, CoinDCX CEO Sumit Gupta recently took to a post on X, drawing attention to the nationwide anticipation of eased taxes within the VDA sector. “We will continue to push for the rationalization of the taxation framework, which includes reducing the TDS to 0.01%, allowing the setoff of losses on VDA transactions, and modifying the 30% tax on capital gains,” he added.
Furthermore, the Indian exchange CEO also spotlighted that the CoinDCX community submitted data-backed quantitative analyses, revealing a potential increase in government revenue should the taxation system be revised. “We are hopeful that the government will consider our requests and that we will see changes in the future,” he concluded.
Also, it’s worth noting that the Budget 2024 raised the tax bar on long-term capital gains to 12.5% from 10% on all financial and non-financial assets. These decisions by the FM have fueled a tidal wave of speculations across the Web3 and trading landscape nationwide.
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CoinDCX CEO Reacts Post-Budget
Sumit Gupta, the Co-founder and CEO of the CoinDCX crypto exchange, stated, “CoinDCX welcomes the Finance Minister’s announcement in today’s budget regarding the abolition of the Angel tax for all classes of investors. We are confident that this will significantly bolster the Indian tech start-up ecosystem, especially in the Web3 sector. India stands at the forefront of the global Web3 ecosystem with a network of over 1,000 startups spanning diverse sectors.”
“Collectively, these Indian Web3 startups have secured funding exceeding $2.5 billion, reflecting the landscape’s robust growth and investment potential. In 2023, Indian Web3 projects secured approximately $270 million in funding. These figures indicate investors’ interest in the region’s early-stage Web3 innovation,” he added.
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