The crypto industry players demand the abolition of the 1% Tax Deducted at Source ( TDS ), a measure currently in place.
Another demand is that the offsetting of losses against gains made should be allowed which will ensure a level playing field in the cryptocurrency space, devoid of regulatory or tax arbitrage for any participant. Additionally, contemplating the establishment of a robust self-regulatory body for crypto and blockchain sector participants could be a game-changer.
It was also demanded that the Government should look at creating special economic zones for Web3 startups and offer tax holidays to startups during the initial years so that entrepreneurs can focus on innovation and product development without worrying about cash flows and that the the Central Government will shape regulations for virtual digital assets ( VDAs ).
The Finance Ministry in 2022 introduce done 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 forth coming Budget 2024.
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