Budget 2022 prediction: Will the government of India tax crypto-related income?
Will the new Union budget of the Indian government tax crypto income? With New Year setting in, the government of India is seeking to tax incomes generated from crypto trading. With increasing popularity, there has been a growing demand for Decentralized assets. Senior tax advisors are soughing new ways of taxing cryptocurrency trading and the assets can be treated as business income.
What can be predicted in the Union budget 2022?
Cryptocurrency development in India is on the upswing with sharp investment in cryptocurrencies in the year 2021. There was an increase in the number of crypto investors, which is why the Government of India is preparing a bill to the presented in the Winter Session of parliament, but it was not done as announced. But there can be a big announcement in 2022 if crypto-incomes will be taxed in India or not.
The budget will be presented on the 1st of February 2022 by Union Finance Minister Nirmala Sitharaman and the central government of India might be bringing in changes in the income tax laws. These laws will be passed to strengthen the economy of the country and encourage crypto investors as well. It can be assumed that the government can keep the income tax slab between 35 percent and 42 percent on crypto assets.
Crypto bill – Will it be introduced by the Government of India?
There are higher chances that the Government of India will be introducing a new bill and tax on cryptocurrencies. Numerous advertisements on cryptocurrencies have been featured by film stars, which says; easy and high returns on crypto investments. However, currently, there are no regulations or crypto trade in the country.
Key takeaways on Crypto trading in India –
· Cryptocurrencies are not considered a legally tradable asset in the country but are considered a commodity.
· Crypto trading might be taxed if the currency is held over 36 months, and might be entitled to 20% tax.
· Cryptocurrency trades and transactions are quite frequent in the country, so would be taxable as business income.
· Cryptocurrencies are reported as business income, so the intimation of GST will also be examined.
· Cryptocurrencies might be compartmentalized as virtual currencies, and taxes might be viable in terms of crypto payments and investments.
The concerned authorities of the Income Tax Department of India say; that crypto traders have to pay taxes on crypto trading and need to report transactions if they have invested and gained from the digital assets. The Government of India will be taxing crypto incomes because of the fact that it is very easy to invest in cryptocurrencies which led to huge trade volumes on the exchanges.
As of now, with a sharp increase in the number of crypto investors, it can be predicted there will be a big announcement from the government of India. With rising crypto trades and Crypto exchange development in the country, the government will be preparing a bill discussing crypto affairs. There are higher chances that government may impose a tax on crypto earnings during budget 2022.
Comments
Post a Comment