Indian Finance Minister Nirmala Sitharaman is scheduled to present the interim budget for 2024 in Parliament. This budget will outline the government’s financial plans and priorities until a new government is formed after the upcoming elections in the second quarter of 2024.
The interim budget, also known as a provisional budget, serves as a short-term financial plan. It requires the Parliament’s approval for an advance grant to cover the essential expenses of the Union government during the initial months of the new financial year.
However, it is important to note that a comprehensive and detailed budget will be presented by the newly elected government to the Lok Sabha. This full-fledged budget will encompass a broader range of financial aspects and policies.
The BSE SENSEX, a market-weighted stock market index comprising 30 financially robust and renowned companies listed on the Bombay Stock Exchange, is currently showing a gain of 0.40% ahead of the interim budget presentation.
Similarly, the NIFTY 50 is also experiencing an increase of 0.20%. The positive momentum in the market indicates a potentially favorable outlook for investors.
Budget Expectations in the World of Startups & Crypto
Among the eagerly anticipated expectations in the upcoming Budget are potential tweaks to policy surrounding tax benefits, employee stock options, and stock awards specifically tailored for startups.
Additionally, there is a hopeful outlook for the simplification of the capital gains tax regime, which could bring about significant changes. The Budget holds the promise of addressing these key areas, fostering a favorable environment for the startup ecosystem.
For the cryptocurrency industry, stakeholders have been emphasizing the significant impact of the one percent withholding tax on crypto gains on the domestic digital assets market. This rule has resulted in a notable shift of crypto exchange user traffic to foreign platforms, causing concerns about the future growth and potential of the local cryptocurrency market.
The Finance Minister, Nirmala Sitharaman’s decision to maintain a flat 30% tax on virtual assets. This proposal was initially put forward in the fiscal year 2022 and has left the crypto industry market participants without any relief. This decision has significant implications for the industry and its stakeholders, as they were hoping for a more favorable tax regime.
In addition to the high tax slab imposition, the Union government, in its 2022 budget presentation, imposed an additional 1% tax deductible at source (TDS) on all crypto transactions. This move positioned India among the countries with the highest tax slabs for crypto transactions, signaling a significant impact on the crypto landscape in the country.