Today it is a big day for India as the Indian Finance Minister Mrs. Nirmala Seetharaman presented the budget for 2023-24 in the Indian Parliament today.
Like all other sectors in India, the Indian Crypto Industry has looked and hoped for some relief from for the Crypto Assets/ Virtual Assets in the taxation structure that was announced last Budget.
We have earlier covered with an article with the expectation of the crypto industry on Budget 2023.
It is to be remembered that the Budget 2022-23 hammered the Crypto Industry with 30% tax for the Virtual Assets and 1% TdS for the crypto transactions from 1 July 2022.
With this announcement made a big blow to the Crypto Industry in India. Various representation were made with the Indian Finance Ministry to reconsider the tax bracket and to reduce the tax structures.
Everyone were eagerly waiting for some relief in today's budget on the Virtual Digital Assets.
But to the surprise, there was no mentioning on the Virtual Digital Assets by the Finance Minister in her budget speech. Even she has not mentioned anything about the Central Bank Digital Coin (CBDC), which she has announced last time and it is currently under pilot test
With this, the existing crypto taxation would follow with 30% tax and the 1% TdS on Crypto Transactions.
According to the Finance Bill 2023, one may attract a penalty under Section 271C of the Income Tax Act if he tries to avoid TDS by using various offshore or non-compliant platforms. The defaulters can also be detained in jail for seven years.
With the current stand, there is no relief for the Crypto traders and investors based in India.
But with the current G20 leadership, India would be hoped to seek some co-operation with other countries to make a regulatory framework for Cryptos in the coming days and both the Prime Minister and Finance Minister hinted couple of times earlier!
Let's hope for some good days ahead for the Crypto enthusiasts!