India’s Interim Budget presentation just wrapped up a few hours ago, however, what came as a shock was no mention of crypto or the Web3 ecosystem in the event. The crypto community had been expecting a lot from the Interim Budget announcement as they advocated for relief in the crypto tax regime in India. Though the efforts made by Indian crypto enthusiasts seem to be in vain, an expert has suggested that the country could reduce the crypto tax rate to 5% from the current 30%.
Expert Envisions Relief In India’s Crypto Tax System
In an exclusive interview with Coingape Media, Chirag Chauhan, the Founder of CA Chauhan & Co., anticipates significant reforms to India’s crypto tax system post the 2024 elections. Notably, he pointed out the conspicuous absence of any reference to cryptocurrency in the detailed Interim Budget document and said, “seems like the government will take call only post elections.”
Furthermore, Chauhan emphasized the government’s apprehensions regarding the potential misuse of cryptocurrencies, which is why there’s a delay in decision-making. However, he expresses optimism indicating that the crypto community can expect clarity and progress only in the post-election landscape. Furthermore, Chauhan noted that he expects a reduction in the 30% fixed crypto tax rate to 10% or even 5% in the final Union Budget document.
Nonetheless, he shed light on the government’s concern regarding the crypto domain. The Founder of CA Chauhan & Co. stated, “Cryptocurrency has implications beyond taxation, which are a major concern for the government.” Whilst, he added that a “legal recognition and reconsideration” for the crypto arena could provide relief to crypto holders in the country.
Also Read: Interim Budget 2024: Nirmala Sitharaman Propels Economic Growth With 11% CAPEX Surge
India’s Cautious Approach Is A Boon To The Web3 Ecosystem
Meanwhile, Akhil Pachori, a Chartered Accountant based in India, provided insight into the government’s unwavering stance on crypto. Pachori stated, “The decision to maintain its stance on cryptocurrency taxation underscores a strategy of cautious engagement with the digital currency space.”
While the crypto community is disappointed with no tax relief despite the recent ‘Reduce Crypto Tax‘ rally, Pachori suggested otherwise. He noted that this move could “paradoxically” benefit the Web3 ecosystem, fostering a “more resilient and serious” market. Pachori concluded his stance by adding, “This approach mirrors a trend of cautious optimism, ensuring that innovation is encouraged without compromising financial stability and security.”
Also Read: CoinDCX And WazirX Founders Hope Crypto Tax And TDS Reduction In Budget 2024
The post Exclusive: India To Slash Crypto Tax Rate To 5% After 2024 Elections, Expert Predicts appeared first on CoinGape.