India Keeps Controversial Crypto Tax Rules Unchanged, Finance Minister’s Budget Speech

• India’s Finance Minister Nirmala Sitharaman introduced an interim budget on Feb. 1, 2024, before the nation’s elections between April and June.

• On Tuesday she revealed a full budget for 2024-2025.

India’s Finance Minister Nirmala Sitharaman kept crypto tax rules unchanged in her address announcing the nation’s budget for 2024-2025 on Tuesday.

The primary demand from India’s crypto industry was to reduce the controversial tax-deducted-at-source (TDS) policy on crypto transactions from 1% to 0.01%. It made its representations to government officials with evidence from several sources, including a think tank study that provided evidence to support a reduction in the TDS.

The industry also asked the government to establish progressive taxes on gains instead of the flat 30% rate, and allowing losses to offset gains. They have also pushed for multi-agency regulation.

The budget is the first since Prime Minister Narendra Modi was elected for a third straight term. Modi’s Bharatiya Janata Party (BJP) failed to secure a majority in this year’s election, pushing them to form a coalition government, along with the limitations that come with it.

This budget is being seen as a roadmap for his vision for the next five years, one that would consider the sentiment reflected in the unexpected election results.