#Budget 2023 starts in 1 hour!
what changes for Crypto and Web3 Industry in Budget 2023?
⚡ Lower taxes?
⚡ TDS reduction?
⚡ Slab benefits?
⚡ Regulations on exchanges?
Let's discuss!
(1/7)
First things first, Let us recap Budget 2022 😀
Budget 2022:
1️⃣ Aggressive tax on Indian crypto Investors.
→ Tax at flat 30% on transfers
🔴 No set-off or carry forward of loss
2️⃣ TDS at 1% on transfer of crypto assets
(2/7)
⚠️ Impact of the Aggressive tax system:
➡️ Indian Investors shifted trading activities to foreign exchanges
➡️ Indian exchanges lost 95-97% of trading volume due to TDS
➡️ TDS form 26QE is still NOT available for filing on Income tax portal
(3/7)
So what changes can we see from Budget 2023?
🚨 Will the 30% Tax rate reduce?
➡️ Nope, no changes in Budget 2023
🚨 Will set-off and carry-forward of losses be allowed?
➡️ Nope, no changes in Budget 2023
(4/7)
🚨 Will 1% TDS reduce to a lower rate?
➡️ Nope, no changes in Budget 2023
🚨 Clarity on how to treat different crypto transactions?
➡️ There will be no clarifications or changes in any crypto tax provisions.
(5/7)
⚠️ Any new taxes on Crypto?
➡️ No, Ideally there won't be any new taxes.
However there is a possibility that GST Council may levy GST on cryptos in future (since gold also has 3% GST)
(6/7)