The cryptocurrency business anticipates a drop in TDS from 1% to 0.01% in Budget 2024.

Exchanges like WazirX have stated that it should be possible to offset losses against gains.

From July 1, 2022, transfer of virtual digital assets (VDAs) such as cryptos has been attracting 1% TDS under section 194S of the Income tax Act.  

The crypto industry anticipates that the finance ministry will lower the tax deducted at source (TDS) rate on virtual digital assets (VDAs) from 1% to 0.01% in the upcoming Budget.  

The industry also urges the government to allow offsetting and carrying forward losses from sale of VDAs.
Exchanges like WazirX said the offsetting of losses against gains made should be allowed. 

"The underlying objective is to ensure a level playing field in the crypto space, devoid of regulatory or tax arbitrage for any participant," said Rajagopal Menon, vice-President, WazirX. https://www.toprevenuegate.com/nyewbmta?key=503325af3fe71ceb9b8e83b927a4d7b4  

A report recently released by technology policy think tank, the Esya Center, claimed that 3-5 million cryptocurrency users had shifted to offshore trading platforms with the imposition of a 1% TDS on the trading VDAs.

The global market capitalization of cryptocurrency tokens has increased since the year 2023 began. Rahul Pagidipati, CEO of ZebPay, is optimistic about a budget that acknowledges the industry's dynamic nature and gives it the boost it needs to continue growing in the upcoming year.

The CEO of Mudrex, Edul Patel, also emphasized that the current implementation of a 1% TDS on each transaction may prevent people from adopting cryptocurrencies. 

He said that addressing this issue in the next budget would be a wise move and would be in line with the government's larger goals of promoting a strong and long-lasting crypto ecosystem.