- Indian Union Budget 2024-25 fails to address cryptocurrencies, causing uncertainty in the crypto community.
- The current tax regime for crypto transactions remains unchanged, with a 30% tax and 1% TDS.
- Mixed reactions from the middle class as the budget introduces a revised tax.
The Indian government has failed to mention cryptocurrencies in the Union Budget 2024-25, leaving the crypto community in the country uncertain about the future of digital assets.
Today, July 23, Finance Minister Nirmala Sitharaman presented the 2024/2025 Budget, which included key announcements such as nine priorities for generating opportunities, including agriculture, employment, and innovation. Moreover, the budget cited the abolition of the angel tax for all startup investors and the withdrawal of the 2% equalization levy.
Following the release, prominent figures in the Indian crypto community have noted the absence of crypto in the budget. Indian crypto developer Vijay Saran, who took to X to break the news, stressed that there was “not even a single mention of Crypto” in the budget.
According to Saran, this lack of acknowledgment means that the current tax regime for crypto transactions remains unchanged, with a 30% tax and 1% tax deducted at source (TDS) still applicable.
Furthermore, Saran noted that the absence of any crypto-related announcements in the budget has sparked mixed reactions from the middle class, which is still digesting the revised tax regime introduced in the budget. The new tax slabs range from 0% for income up to 3 lakhs to 30% for income above 15 lakhs.
However, the bigger question on everyone’s mind is what the future holds for cryptocurrencies in India. With the government’s silence on the matter, many wonder if a 30% capital gains tax on all assets, including cryptocurrencies, could be on the horizon.
Notably, individuals involved in crypto in India must report income from crypto and virtual digital assets. If held as investments, gains are considered capital gains. If used for trading, they are reported as business income.
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