Interim Budget is Out but not good for Crypto
Hello friends,
I am doing good, and I hope that you are having a good time with your near and dear ones.
The budget for India is released every year in the first week of Feb month. This is the released as per the schedule and but its an interim budget because of the upcoming elections. The interim budget is presented once in five years when the elections are lined up. The purpose of presenting an interim budget is that the new government can present the complete budget. The opposition party should not be able to question the current government and because of this, the current government presents an interim budget with limited announcements.
In this budget, it was expected that the government would be talking about crypto taxation and they will give some relief to the community. The Indian Crypto community has been struggling with taxation part from the last two years. They have a flat tax on the crypto income. They also have no policy to adjust losses against crypto income. Another painful point is they have to pay one per cent tax deducted at source for each sale transaction. This one per cent may not sound like a big amount but for a regular trader, it affects badly. Imagine your capital is reduced by 1% with each trading transaction so how difficult it will be for the trader to keep the funds intact.
Now the surprise is that the government did not talk about anything related to crypto in this interim budget. Surprisingly not even a single word of crypto word mentioned in the speech and this was disheartening. There are many initiatives done by the community on social media channels to bring the attention of the government. All this was done just to bring the attention of the government authorities and do something for the industry. Now after the budget presentation when we know that there is nothing as relief has come to the crypto community in India the community is eyeing the complete budget. Elections are lined up to happen in April and May month this year and the new government will be formed in May end. In any case, the new government will be in force from June month.
The community is still trying to continue what they have been doing through different initiatives with the hope that the government will be paying some attention. It is difficult for many traders to survive in this situation because when they earn money tax is applicable. When they lose money it will not be adjusted against the loss and this is not fair practice. Those who are investing in the stock market can adjust their losses against income and pay whatever is tax liability based on overall income. This should also be introduced for crypto users in the country because this will help them have a fair playground.
Even the crypto exchanges in India are not talking about it because it is not affecting them directly but indirectly they are affected as less number of users are trading. With Recent Chaos created by the finance and intelligence unit in India Indian exchanges have got some users back and this count is good looks. This is because exchanges are providing different options of deposit and they are also providing some bonus to the users depositing funds in the wallet but ultimately the Root Causeway issues should be sorted out by the government and relevant authorities.
Thank you
Peace @mukund123