Crypto Industry Hopes for Tax Cut in Budge from Finance Minister Nirmala Sitharaman

This year’s budget is to be presented soon. Cryptocurrency business has increased rapidly in the last few years in the country. However, the Crypto industry has a complaint of high tax burden. Crypto -linked firms hope that Finance Minister Nirmala Sitharaman can give some relief to this segment in the upcoming budget.

In the budget of 2022, the government imposed one percent TDS on crypto -related transactions. Apart from this, it is also banned from offset of losses in this segment. Firms associated with Crypto say that balanced tax for this segment can boost their business. These firms have made demands such as decreasing TDS to 0.01 percent on crypto transactions, allowing the loss to offset and reducing the tax rate on virtual digital assets (VDA).

Investors associated with Crypto move to foreign exchanges due to one percent TDS on transactions. This makes it difficult for the government to monitor these transactions. The most popular cryptocurrency Bitcoin of this market is a strong boom before Donald Trump in the US became a president early next week. The price of bitcoin is trading at more than one million dollars.

However, the central government has laid down a tough attitude towards cryptocurrency. Recently, Home Minister Amit Shah had said that cryptocurrency, dark web, online marketplace and drones are a challenge in the efforts to ban drugs in the country. He said that strict measures are needed to curb it. The Reserve Bank of India (RBI) also stated the need to ban this segment. The RBI described the cryptocurrency as a big risk for financial and monetary stability. Last year, former RBI Governor Shantikanta Das said, “I believe it should not be allowed to dominate the financial system. This is a big risk about financial stability. The banking system is also risk from cryptocurrency. The situation can create a position in which the control of the central bank on the supply of funds in the economy may end. ”