A petition by Indian investors to have the government reduce the newly instated crypto tax rate has received over 52,000 signatures in just a few hours. The petition calls for several changes to the proposed laws, saying that the laws as they stand would harm investors and the economy.
India’s decision to legalize the crypto market by way of enforcing taxation was generally met with a good response. However, the decision to tax the asset class at 30% elicited a critical response, saying it would take too much out of investors’ profits. A petition calling for a reduction in taxation has gained over 52,000 signatures in just a few hours.
Crypto tax ruling under fire
The Change.org petition says that India has about 15–20 million crypto investors who are actively engaged in developing and deploying various crypto services. Saying that the Indian crypto industry can contribute significantly to the country in the form of providing employment, bringing in FDI investments, business tax payments, and income tax revenues to the government, and calls for a revision of the tax proposal.
Specifically, it does not want crypto to be categorized in the same bracket as betting and gambling, and for taxation to be on the same level as stock market transactions. That is, it asks for short-term capital gains crypto tax to be 15%. It also asks for the TDS of 1% at sale to be reduced to 0.05%, and for loss set-off and carry-forward to be allowed.
However, none of the rules are set in stone, and the change would only come into effect in the next financial year. Finance Minister Nirmala Sitharaman said in an interview on Times Now that “consultations on digital assets is on,” implying that there could be revisions. She also said that there was no fixed timeframe for a regulatory framework, saying, “we’ll have to see, let this first get passed.”
Indian Prime Minister speaks about the digital rupee
Prime Minister Narendra Modi, on Feb 3, offered his thoughts on a digital rupee, which has long been rumored to be an important consideration. The head of state said that the digital rupee would bring new innovations, create opportunities, and revolutionize fintech.
Modi said that the asset would be regulated by the central bank and that the asset would be able to be converted to cash. He recognized the benefits of security and efficiency,
“CBDC will make digital payments and online transfers of funds more secure and risk-free. This will also lead to ease in development of global digital payment systems.”
India has finally offered a clear stance on crypto and the digital rupee, after years of vacillating. Indian investors will be happy on the whole, though they will fight for changes as deliberations continue.
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