Cryptocurrency Community Presses for Key Changes Ahead of Union Budget 24-25

The cryptocurrency community is eagerly awaiting the upcoming union budget as Finance Minister Nirmala Sitharaman is set to table it on July 23. With the first budget after the May 2024 elections results, there is much anticipation surrounding the potential impact on the industry.

Ahead of the budget session, the cryptocurrency community has put forth several key demands that they believe could significantly benefit the industry. One of the main proposals is to reduce the Tax Deducted at Source (TDS) rate on Virtual Digital Asset (VDA) transfers from 1% to 0.01%. This move is seen as crucial in stimulating more transactions and increasing market liquidity.

Additionally, the community is calling for a revision of the threshold limit for tax deduction under Section 194S, suggesting an increase from Rs 50,000 to Rs 5,00,000. This adjustment could provide relief to investors and encourage more participation in the cryptocurrency market.

Another important demand is the ability to offset and carry forward losses from VDA trading, similar to other industries. Currently, losses in the cryptocurrency sector cannot be carried forward, which hampers long-term investment strategies. Introducing this flexibility would align the crypto market with other financial markets and create a more stable and attractive environment for investors.

As the parliament monsoon session kicks off tomorrow, all eyes will be on the finance minister as she presents the union budget and addresses the concerns of the cryptocurrency community. The decisions made during this session could have a significant impact on the future of the industry in India.