Ashish Singhal, Co-founder, CoinSwitch.
Credit: LinkedIn/@ashish-singhal-peepalco
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
Various experts from different sectors have put forth their expectations from the Budget for their industry. Speaking on behalf of the VDA sector, Ashish Singhal, Co-founder of CoinSwitch, said, “The Virtual Digital Asset (VDA) industry in India has immense potential to contribute to the nation’s digital economy. To fully harness this opportunity, the upcoming Budget provides a crucial moment to refine taxation policies, fostering both growth and compliance within the sector."
"We propose a reduction in the Tax Deducted at Source (TDS) on VDA transactions from the current 1 per cent to 0.01 per cent. This adjustment would significantly ease compliance challenges and promote market transparency while ensuring the tracking and tracing of transactions and boosting tax revenues," he added.
"Additionally, we recommend raising the TDS applicability threshold from Rs10,000/50,000 to Rs 5,00,000. This would protect small investors and traders from undue tax burdens, ensuring fair treatment across the board," he said.
"To further support the industry’s growth, we advocate for aligning the taxation of VDA income with other asset classes and removing the current discriminatory treatment. Allowing taxpayers to set off or carry forward losses, as permitted under capital gains provisions, would establish parity and create an environment for innovation," Singhal added.
"We are hopeful that the government will recognize the VDA industry’s potential and take steps toward balanced and progressive policies that enable its growth,” the CoinSwitch co-founder said.
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.