Crypto Segment is disappointed with Budget, No Tax Relief

Trading in cryptocurrencies has grown rapidly in the last few years. However, this segment is facing a high tax burden. Crypto firms have suffered a setback as there is no tax relief in this year’s budget. Finance Minister Nirmala Sitharaman has announced reforms for some sectors in the budget presented on Tuesday. However, there was no mention of the crypto segment or blockchain technology in it.

Crypto firms had requested the central government to reduce the tax deducted at source (TDS) on crypto transactions by one per cent. Bharat Web3 Association told Gadgets360, “We had submitted an analysis on the decline in user trading and transactions, and how changes in the taxation structure can increase government revenue. We will continue to push for balanced taxation, including reducing TDS to 0.01 per cent, allowing set-off of losses on VDA transactions, and amending the 30 per cent tax on capital gains.”

Some firms associated with this segment believe that last week Crypto A breach of a multi-signature wallet of the exchange WazirX could be one of the reasons for not including crypto-related reforms in the budget. In this case, funds worth more than $240 million were lost. This fund was sent to a new address linked to the controversial crypto mixer platform, Tornado Cash.

WazirX came to know about this matter from a post on the social media platform X by security firm Cyvers. WazirX said in a statement, “We have come to know that the security of one of our multi-signature wallets has been breached. Our team is investigating it.” WazirX has stopped all deposits and withdrawals on its platform. Cyvers had said that the address to which the funds were sent from WazirX converted PEPE, GALA and USDT tokens into Ether. It shared a screenshot which showed that a large amount was transferred in three transactions.