Budget 2025: Crypto industry urges simplified tax structures

As the Union Budget 2025 approaches, the cryptocurrency industry in India is urging the government to simplify tax structures, provide clearer regulatory frameworks, and ease compliance burdens. Stakeholders believe these changes are critical for fostering innovation and growth in the rapidly evolving digital asset space.

Simpler tax structures
Currently, the Indian crypto market faces a flat 30% tax on capital gains from virtual digital assets (VDAs) and a 1% Tax Deducted at Source (TDS) on all crypto transactions. Industry leaders are advocating for reducing the TDS to 0.01%, which they argue would improve tax compliance and reduce the capital flight to foreign exchanges. Additionally, they are calling for the ability to offset crypto trading losses against gains to create a more balanced tax environment.

Regulatory clarity
The industry has long sought a clear and well-defined legal framework for crypto assets. There are hopes that this year's budget will address the legality of cryptocurrencies and establish a dedicated regulatory body for oversight. This would bring much-needed certainty to the market and encourage more investment in the sector.

Compliance and Innovation Incentives
To promote innovation, industry experts suggest tax breaks and subsidies for blockchain and Web3 startups. Such measures would position India as a global hub for decentralised finance (DeFi), digital identity solutions, and asset tokenisation. Raj Karkara, COO at ZebPay, emphasised the need for policies that incentivise innovation and ensure a level playing field for domestic players.

With the crypto industry looking forward to the Union Budget 2025, the focus remains on introducing simpler tax structures, regulatory clarity, and support for innovation. These reforms are expected to unlock the full potential of India's digital asset space, fostering growth and competitiveness on a global scale.

Stay informed with the latest Business News on Times of India. Explore the list of Bank Holidays, stay informed about Budget 2025, discover the new Income Tax Slabs, and use the Income Tax Calculator for hassle-free tax planning.

Unlock Investment Potential: Enroll in ET's Stock Valuation Workshop - Batch 3. Secure Your Spot Now!