Crypto Tax Budget 2022 Crypto Assets to Attract 30 percent Tax New Crypto Income Tax Rule Explained

New Delhi. Union Budget 2022 (Union Budget 2022) has clarified the manner in which taxes on Digital Currencies will be levied. On Tuesday, Finance minister Nirmala Sitharaman announced a new taxframe for cryptocurrency investors while presenting the budget.

The Union Budget proposed in 2022 that the transfer of any Virtual or Cryptocurrency Asset will be taxed at 30 percent. The finance minister said in budget 2022 that no deductions, except for the cost of Acquisition, would be allowed and any losses in the transaction would not be allowed to carry-forward.

Addressing a post-budget press conference (FM Sitharaman PC), Finance Minister Nirmala Sitharaman clarified the situation regarding cryptocurrencies and taxes on it. He said that no currency can be considered a currency unless it is issued by the central bank. Any cryptocurrencies that are outside the central bank framework are not currencies.

The government will be able to monitor well
On this, Amit Singhania, Partner at Shardul Amarchand Mangaldas & Co, said that the situation has been clarified by taxation on digital currencies. In the first instance, it seems that a 30 per cent flat tax will be levied on Gross Basis on digital currency. In addition, TDs will be levied for the transfer of crypto assets at a rate of 1 per cent for transactions exceeding a certain limit, Singhania said. The finance minister also announced that the recipient of the crypto as a gift will have to pay taxes. Singhania said, ” the introduction of TDs on crypto-transfers will enable the government to better monitor crypto transactions.”

 

Better for crypto indrasti
WazirX founder and CEO Nishal Shetty said, ” clarity of tax is a welcome step. Overall, it is a great relief to see that our government is taking a progressive stance towards innovation. By bringing taxation, the government legitimizes the crypto industry to a great extent. Most people, especially corporate, who are side-line due to uncertainties, will now be able to participate in crypto. Overall, this is a positive step for the industry.”

 

Taxes on crypto high, but positive
Zebpay CEO Avinash Shekhar said, ” taxing virtual digital assets has started to look forward to the entire eco-system, including investors and exchanges. Although the 30 percent tax on income from virtual digital assets is quite high, it is a positive move, as it legalizes crypto and signals an optimistic sentiment for the acceptance of crypto and NFT in all stakeholders in the country. The government has come a long way in its stance towards crypto from last February to today and we are confident that it will usher in a new era of development and innovation for India in the Web 3.0 world.”

It is noteworthy that for the past 3 months, investors and companies (exchanges) were in a dilemma about what action the government would take on the cryptocurrency. The government has taken steps to regulate it. Let’s say that cryptocurrencies have gained immense popularity in India over the past few years. With over 10 crore cryptocurrency investors, India is also a big market for digital tokens.

 

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