Crypto Taxation in 2022 Budget Live Updates, New Crypto Regulations and TDS Rules in Union Budget 2022 Live
Crypto Taxation in Budget 2022 Live Updates, Union Budget 2022 Cryptocurrency Taxation Live News: Budget expected to provide clarity on crypto tax.
Cryptocurrency tax news in the Union Budget 2022 live updates: India’s crypto tax regime is finally here! The government has taken a conservative stance on the taxation of crypto assets by announcing a fixed rate of 30% on income from such income. In her 2022 budget speech, Finance Minister Nirmala Sitharaman said a 30% tax would be levied on income from the transfer of virtual digital assets. She added that no compensation will be allowed for losses. Additionally, donations of virtual digital assets would be taxed in the hands of the recipient.
Noting the phenomenal increase in transactions in “virtual digital assets”, Sithraman said the scale and frequency of these transactions have made it imperative to provide for a specific tax regime.
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“Accordingly, for the taxation of virtual digital assets, I propose to provide that any income derived from the transfer of any virtual digital asset will be taxed at the rate of 30%,” the finance minister said. Sitharaman further stated that no deduction in respect of any expense or allowance will be allowed when computing such income, except for the cost of acquisition. The loss resulting from the transfer of a virtual digital asset cannot be compensated by any other income.
The Minister of Finance has also proposed to provide for a TDS on the payment made in relation to the transfer of a virtual digital asset at the rate of 1% of such consideration above a monetary threshold. It has also been proposed that the gift of a virtual digital asset be taxed in the hands of the recipient.
The finance minister also said that by 2023, a blockchain-based central bank digital currency (CBDC) backed by the RBI will be introduced.
Commenting on the announcement, Sundara Rajan TK, Partner at DVS Advisors LLP, said: “Clarity on the taxation of digital assets is long overdue and was expected to be provided this year. The announcement of a 30% tax on digital assets, coupled with the government’s launch of its own digital currency, indicates that the government intends to discourage the same and allegedly intends that only HNIs do such investments and that the government does not allow cryptos. as currency.
Ahead of the budget, cryptocurrency pundits and investors expected clarification on the taxation of gains from crypto assets in the 2022 budget. Some pundits believed Finance Minister Nirmala Sitharaman might not directly address the issue. issue of cryptocurrency in his 2022 budget speech. However, some announcements related to crypto-tax were to be made by the Minister of Finance.
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According to Senior Senior Economic Advisor Sanjeev Sanyal, the government needed to take a balanced view of cryptocurrencies. Meanwhile, the 2022 Economic Survey tabled in Parliament on Monday January 31, 2021 did not mention cryptocurrency or Blockchain. It is also highly unlikely that the Cryptocurrency Regulation Bill will be presented to Parliament in the current budget session.
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“As you know, this is the subject of debate, both in government and in the Ministry of Finance and even in Parliament. So this is something that is currently under discussion… There are financial stability issues. But there are also other arguments that are being made in terms of innovation and so on…obviously a balanced view on this will be taken,” Sanyal said as quoted by PTI.
Stay tuned for all updates on cryptocurrency and crypto taxation from the 2022 budget