N Sitharaman returns as Finance Minister in India. Tax revision expected?

The finance ministry is important because its the body that makes many decisions. The department also creates guidelines and policies for crypto in India. Whatever they have done in the past has affected the industry, and users are now suffering. Be it tax rules and even some policies that are not at all friendly for the crypto community.

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N Sitharaman was the finance minister when such tax rules and policies were implemented and now once again she is back as finance minister. This is a matter of disappointment for taxpayers because they have not been happy as they haven't got anything friendly from the finance ministry. The disappointment hashtag has also been trending on Twitter where people are sharing the thought that the current finance minister is not going to help the crypto industry and they will follow the blind rule for the taxpayers. Ideally, there should not be a flat tax rate for any industry but surprisingly that is the truth that has been implemented by the current finance minister and because of this many traders users and businesses are affected because of this higher tax rate.

Nirmala Sitharaman’s reappointment as India’s finance minister in the new coalition government is “definitely a wise step” for keeping the focus on infrastructure development and exports, says Deven Choksey, managing director at DRChoksey FinServ Pvt.

This may be a good move for the industry where tax rules are clear and friendly but it is not good for the Crypto community for sure because it is one of the industries in the country where tax laws are not fair. Many sectors are demanding the tax revision which might happen in the future but looks like Crypto is going to be one of the industries that the finance ministry is not very concerned about however they keep on saying that they are trying to explore the possibilities but looks like this process of exploration is going to be lengthy for them. Even when they are in the process of exploring the possibilities then also they have not implemented a fair tax rule where the loss adjustment is not allowed and even tax is applicable when a trader is in loss which is not fair.

I am a taxpayer in the country and I know how difficult it is for any taxpayer to manage the Crypto portfolio in this situation when the tax is applicable on the higher percentage as well as without loss of setting sometimes it can be payable even if there is no profit. Undoubtedly it is an inconvenient situation and I hope that that should not be continued for a long but again it is hard to say when that is going to happen.

People are disappointed with the return of the current finance minister but they are still hoping that the finance minister will do something in the next term to bring some positivity and better rules and regulations for industries including Crypto. I am also hopeful so let's see how things move forward and what better things come along the way for the Indian Crypto community in the coming weeks and months.

Thank you

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