Sumit Gupta, the CEO and Co-Founder of CoinDCX, a prominent Indian crypto exchange, has expressed optimism for potential crypto tax reform in India. Despite the lack of immediate relief in the Interim Budget for high TDS and crypto tax rates, Gupta remains hopeful that positive changes may be implemented in the final budget after the elections.
In a recent post, Gupta highlighted the challenges posed by the current crypto tax rate of 30% and 1% TDS. He also added the ‘ReduceCryptoTax’ hashtag to his post to keep the trend alive and voiced concerns about the potential migration of Web3 builders and consumers beyond Indian borders, which could pose a threat to the emerging Web3 startup ecosystem in the country.
Gupta believes that a supportive policy framework in the upcoming full budget could catalyze positive changes and motivate Indian Web3 builders and investors to focus on broader use cases beyond trading. He strongly believes that after the 2024 elections conclude, India could be ready to welcome a reduction in the exorbitant crypto tax rates. Gupta envisions a digital landscape where innovation thrives, aligning with PM Narendra Modi’s vision for ‘Anusandhan’ and long-term financing of domestic projects. Despite the challenges in India’s Web 3 space, Gupta noted that CoinDCX is committed to building a future where India leads in the global digital revolution.
The recent Interim Budget presented by India made no mention of crypto or the Web3 ecosystem, dashing hopes for relief in the crypto tax regime. However, Chirag Chauhan, founder of CA Chauhan & Co., anticipates significant reforms after the 2024 elections, hinting at a possible reduction in India’s current 30% crypto tax rate to 10% or even 5% in the final Union Budget 2024 document. He also stressed that legal recognition and reconsideration could provide relief to crypto holders beyond taxation, and emphasized the government’s concern regarding crypto misuse.
In conclusion, Sumit Gupta and other key figures in the Indian crypto industry remain hopeful for positive changes in the country’s crypto tax regime, particularly after the 2024 elections. The potential reduction in the high crypto tax rates could pave the way for a more conducive environment for the crypto industry in India, and support the growth of the Web3 ecosystem in the country. While the Interim Budget may have been disappointing for the crypto community, there is optimism for future reforms and support for the industry in the final Union Budget after the elections.