Bharat Web3 Association (BWA), a newly formed cryptocurrency and web3 industry body, has written to the finance ministry sharing its concerns and recommendations on taxation and regulatory uncertainty ahead of the Union Budget 2023-24.
The industry body is expected to meet concerned officials from the Central Board of Direct Taxes (CBDT) and others next week, according to a source familiar with the developments.
The cryptocurrency industry in India is currently dealing with a number of issues, including rapidly declining trading volumes across exchanges, global volatility of crypto tokens since nearly the beginning of 2022, and, most recently, the collapse of the world's third largest crypto exchange, FTX, which has caused widespread distrust among retail investors.
In India, the situation has been exacerbated by the introduction of a new taxation regime earlier this year, which has resulted in an 85-90 percent decline in trading volumes on exchanges.
“The BWA aims to highlight the impact of the existing tax provisions such as TDS, tax on income from VDAs (virtual digital assets) and not allowing carrying forward of losses on the wider industry and share its inputs on suitable amendments which can help address the concerns of the government and at the same time allow growth of this sector,” a BWA spokesperson told Moneycontrol.
The association will also continue to focus on raising awareness of Web3 and blockchain-related innovations and research, the spokesperson added.
Gains from Virtual Digital Assets (VDAs), which include cryptocurrency tokens, Non-fungible tokens (NFTs), and others, are subject to a 30 percent income tax as of April of this year.
On July 1, an additional Tax Deducted at Source (TDS) was implemented. ThisRead more on moneycontrol.com