India’s Finance Minister, Nirmala Sitharaman, is scheduled to unveil the budget for 2024–2025 on February 1, 2024, marking the final budget session before the nation heads into Lok Sabha elections. The country’s Web3 community has expressed its demands, particularly seeking tax relief for crypto-related activities.

These demands include a reduction in TDS from 1% to 0.01%, the ability to carry forward losses, and more flexible tax slabs. Consequently, the Web3 community has initiated a campaign with the hashtag #ReduceCryptoTax. They claim that their demands have been on the table for the past two years, but the government has not addressed them. Conversely, the government has mentioned drafting new rules and regulations to safeguard the industry from exploitation while ensuring investor protection.

Despite this, the priority for India’s Web3 community remains focused on having their demands met. There have been no indications from Sitharaman or her department representatives. The community expects clarity only on February 1, 2024.

However, the hashtag campaign hasn't gained significant traction, as evidenced by the relatively low views on related posts. For instance, Dr. Sathvik Vishwanath, CEO of Unocoin, received only 2,343 views on a post published on January 27, 2024. Other crypto enthusiasts, Crypto with Khan and Trading Career, have similarly modest view counts on their posts, indicating a consistent pattern in hashtag usage.

Sathvik has been vocal about the demands, emphasizing the need for policymakers and regulators to strike a balance between taxation, innovation, and global prospects. The community has been under pressure for 724 days due to taxation concerns.

TDS on crypto transactions covers various aspects such as trade, purchase, and deposit, while crypto holders are subject to a 30% tax on gains. The Web3 community argues that high taxes discourage residents from participating in crypto activities, leading to a shift to offshore platforms. According to the Esya Centre’s report, over 90% of the VDA trade volume by Indians is attributed to offshore platforms, amounting to approximately ₹350,000 crores between July 2022 and July 2023.

Meanwhile, the Reserve Bank of India (RBI) has cautioned against the integration of crypto-related activities into the country's financial system, citing constant volatility and financial risks to investors.