Union Budget Fails to Address Tax Cuts for Crypto Profits

Crypto Industry Disappointed by Union Budget 2024

Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on February 1. While the budget was generally optimistic for all industries, the crypto industry had high expectations. However, once again, the budget brought no good news for the crypto space, with Finance Minister Sitharaman not discussing cryptocurrency or the associated market during her 58-minute speech. The Finance Minister, during the budget, did not provide any reactions to cryptocurrency. Alongside, no favourable announcements were made by the government concerning the crypto industry.

High Hopes of the Crypto Industry

Although the crypto industry had been hopeful for some positive news, especially regarding cuts in taxes on crypto profits and TDS, the Union Budget 2024 failed to address cryptocurrency in any way. Finance Minister Sitharaman stated that no interim budgetary tradition of making any populist announcements was followed in the interim budget. This was also a reason why the government did not make any announcements regarding cryptocurrency.

The crypto industry had long been hopeful that the government might bring some positive news for them in the Union Budget. There were particularly high expectations regarding cuts in taxes on crypto profits and TDS. Currently, a 30% tax and 1% TDS are applicable to crypto profits.

Additionally, there was anticipation that the government might provide updates related to the development of a crypto regulatory framework in collaboration with G20 nations. However, similar to the Union Budget 2023-24, this year's interim budget also did not include any announcements concerning cryptocurrency.

Expectations of Positive Developments

After the disappointment from the Union Budget, those involved in the crypto investors are now hoping that after the Lok Sabha elections, the Indian government might make significant announcements related to the crypto industry. It is expected that Prime Minister Narendra Modi, known for his proactive stance on new technologies, might take some innovative steps. Users were having hopes that some new crypto regulation could be seen after Union Budget but their hopes got crashed.

Coin Gabbar believes that, after winning the Lok Sabha elections, Prime Minister Modi, once again, might take significant decisions for the crypto industry. As the global crypto market is substantial and millions of people worldwide invest in it, approximately 10-20% of India's population also engages in this market. Therefore, it is possible that after the upcoming Lok Sabha elections, the government could announce some positive developments for the crypto industry.

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