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Below the Reaction on Union Budget 2024 by Dilip Chenoy, Chairperson, Bharat Web3 Association

The nine focus areas of budget 2024 are key steps towards our goal of Viksit ( check spelling)  Bharat. The budget also lays out a clear framework for digitisation of various sectors , where Web3 technology could play a critical role.

We were hoping for some relaxation to the taxation framework on VDAs in this budget, but the absence of any announcement is not particularly disheartening, given the Govt's overall negative stance towards the sector. We have submitted data-backed quantitative analyses regarding the flight of users' trading and transactions, as well as the potential increase in government revenue should the taxation structure be revised.

We will continue to push for rationalization of the taxation framework, which includes reducing the TDS to 0.01%, allowing setoff of losses on VDA transactions and modifying the 30% tax on capital gains. We are hopeful that the government will consider our requests and that we will see changes in the future.

On the positive, abolishing the angel tax for all classes of investors will work towards bolstering the Indian startup ecosystem. We look forward to more Web3 startups setting base in India, given India's immense Web3 talent and potential.

Finally, the impetus provided to blockchain skilling and talent development in the Economic Survey can empower youth for the exciting opportunities in Web3 and contribute to a skilled ecosystem for Web3 adoption.

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