In light of significant world shifts, India is reevaluate its policies and reevaluate its crypto position.
A senior government official told on Sunday that this revision might delay the long-awaited discussion paper on digital property, which was actually scheduled to be released in September 2024.
” More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, ]and ] where they see the importance of crypto assets”, India’s Economic Affairs Secretary Ajay Seth said in the interview. ” In that stride, we are having a look at the discussion paper once again”.
The move comes as the U. S. pivots towards a more crypto-friendly view under President Donald Trump, who just signed his crypto-related professional purchase, introducing a working class to reform digital asset regulations.
While Seth did not explicitly mention the U. S., he made it clear that India’s bitcoin approach could not be shaped in confinement, saying that online resources “don’t think in borders”.
Speaking to , Saravanan Pandian, CEO and founder, KoinBX, said” As we see other countries revise their plans, India’s changing perspective is important for shaping a sensible regulatory framework that encourages innovation while ensuring financial security”.
Budget 2025: The Crypto Tax Noose Tightens
While the Indian government appears open to revisiting its policy, there’s no sign of relief for crypto traders in India’s 2025 Union Budget—if anything, the tax hammer is coming down even harder.
The new changes proposed by Finance Minister Nirmala Sitharaman include allowing retrospective audits of transactions dating back 48 months and bringing undisclosed crypto gains under Section 158B of the Income Tax Act.
If investors have failed to report gains within the last 48 months, they could face a crippling 70 % penalty on unpaid taxes, as per the budget announcement.
The 30 % tax on crypto gains remains in place, with no exemptions, no deductions, and no differentiation between short-term and long-term holdings.
The contentious 1 % Tax Deducted at Source ( TDS ) on every crypto transaction also persists, further stifling engaged trading in the nation.
Key players in India’s crypto industry have voiced their concerns about the lack of relief in the most recent budget, and the response has been mixed.
Sumit Gupta, the CEO of CoinDCX, applauded the government’s decision to revise its crypto policy but pleaded for more friendly regulations and clarity:
” India ranks# 1 in grassroots crypto adoption ( Chainalysis ), and Web3 could contribute$ 1.1 trillion to India’s GDP by 2032 ( NASSCOM)”, Gupta wrote on X, formerly Twitter. ” To truly lead this digital revolution, regulating the sector, friendlier policies, and releasing a discussion paper on priority is the need of the hour”!
Reading Between the Lines:
– BharatTradeNet ( BTN) – A new digital public infrastructure for trade documentation. Could this be a stepping stone for blockchain-based trade records? Feels possible.We are eagerly awaiting the new simplified Income Tax Act, which is scheduled to…
— Ashish Singhal ( @ashish343 ) February 1, 2025
Ashish Singhal, a co-founder of CoinSwitch, described the budget as a “mixed bag for crypto,” praising the lack of tax relief as a major disappointment while the requirement for crypto transactions ‘ reporting was one.
” No tax relief—trading in India remains expensive”, Singhal tweeted. ” More oversight, but no relief—especially on taxes. Now, we wait for the upcoming income tax bill”.
Crypto traders and investors will be keeping an eye on the upcoming simplified Income Tax Act, which will be introduced in Parliament the following week, for any last-minute surprises.
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