Cryptocurrency companies ask for rationalisation of taxation

As per a report by KuCoin, a cryptocurrency exchange, nearly 115 million cryptocurrency users represent around 15% of the Indian population aged between 18 and 60.

With the Union Budget being round the corner, cryptocurrency players call for taxes imposed so far to be rationalised.

Last year during Union Budget,  Finance Minister Nirmala Sitharaman had announced the imposition of a 30% tax on unrealised gains

Also a one percent tax deduction at the source (TDS) on all income derived from cryptocurrency trading.

During the monsoon session of parliament held in July 2022, FM stated that there is a need for global collaboration to implement a common taxonomy standard on cryptocurrency.

“The cryptocurrency sector needs support from the regulators for creating a business-friendly environment that will enable the growth of blockchain companies in India,” Shivam Thakral, CEO, BuyUcoin, a cryptocurrency exchange noted.

Furthermore, The Reserve Bank of India (RBI), over the years has issued several warnings against investing in digital assets.

In 2018, the RBI forbade banks from providing services to cryptocurrency firms.

However, the ban was overturned by the apex court in 2020.