Union Budget 2023-24 Expectations: Crypto Sector Looks Forward to Tax Deduction

In the Economic Survey 2022-23, citing the FTX collapse, the government has highlighted how the crypto market has proved to be filled with risks.

Union Budget 2023-24 Expectations: Crypto Sector Looks Forward to Tax Deduction

In last Union Budget, a 30 percent tax on profits and 1 percent TDS was introduced on crypto transactions

  • India has been awaiting detailed crypto laws
  • Crypto trading is allowed in India and profits are also taxed
  • India does not recognise any crypto as a legal tender

Union Budget 2023-24 will be tabled by Finance Minister Nirmala Sitharaman in the Indian Parliament today at 11 am. Just like various other sectors, the crypto market is also expecting some favourable announcements for its growth in India in the coming financial year. From tax regimes that can help the demand for cryptos to a regulatory framework on cryptos in India, there is a lot for the crypto industry to be hopeful about the last full budget of the Narendra Modi Government before the general elections in 2024.

In the Union Budget last year, the FM took some tough calls for the crypto sector, introducing 30 percent tax on profits and a 1 percent tax deducted at source (TDS) on all crypto transactions. The government's decision on including virtual assets (like cryptocurrency) under the tax regime was considered to be an indirect way to include crypto transactions in the legal ecosystem. However, it has been a year and the crypto transactions still await to be legal.

After the Economic Survey 2022-23 report presented on January 31, it looks that the government is unlikely to give any prominent thought for legalising the crypto transactions. Citing the FTX collapse, the government has highlighted how the crypto market has proved to be filled with vulnerabilities. The RBI Governor Shaktikanta Das had earlier clarified that the “RBI would like to stick to its stance of prohibiting them completely.”

One of the primary demands for the sector will be a tax cut on the crypto transactions. According to a CoinDesk report, the industry experts expect a reduce in TDS to minimum 0.1 percent from current 1 percent.

Another important announcement to look forward to is India's mention of the work on its digital currency or CBDC. An RBI official previously stated that the transactions using CBDC will remain anonymous to certain degree and will be only take place between banks in India.


Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Richa Sharma
With almost 6 years of experience in journalism, Richa Sharma has joined Gadgets 360 as a Chief Sub-Editor in 2022. She has previously worked as an Entertainment journalist, covering Hollywood news. At Gadgets 360, she tracks news updates, edit articles and write copies for tech and science. Apart from reading and writing news, you can find her scrolling cat videos and memes for her daily dose of laughter. If you have any interesting science/tech updates to share, you can contact her at ...More
Apple Workplace Rules Violate US Labour Law, Agency Finds
Union Budget 2023-24: When and Where to Watch the Live Speech by FM Nirmala Sitharaman
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News


Follow Us


© Copyright Red Pixels Ventures Limited 2023. All rights reserved.