2022 Budget: India will levy 30% income tax on Crypto and Virtual Digital Assets
The cryptocurrency situation in India has seen an increase and decrease in recent times. While the government has been going back and forth with crypto laws, internet users are confused about whether it is legal to invest in digital assets such as Bitcoin, Dogecoin, Shiba Inu, and others.
However, in the latest version of the 2022 Budget, Indian Finance Minister Nirmala Sitharaman has announced that the government will now levy a 30% tax on revenue from cryptocurrencies and digital assets such as NFTs.
India will levy 30% tax on Crypto, NFT Investments
While cryptocurrency experts and investors have been waiting for a clear income tax return from cryptocurrencies and digital assets, some of them believe the national FM will not address concerns during the 2022 Budget speech.
However, FM Nirmala Sitharaman has rectified the crypto situation and announced that the government will start levying a 30% tax on revenue from cryptocurrencies and digital assets. The Minister further added that no reversal will be allowed in the event of a loss. In addition, any gifts for digital goods can also be taxed at the hands of the recipient.
Now, the tax policy on revenue from cryptos and digital assets is a positive step in the sense that the Indian government has finally recognized cryptocurrency as a legitimate investment option in the country. However, some crypto experts do not recommend a 30% tax rate.
“The imposition of a tax on digital assets (such as crypto) while [providing] clarity is not in line with what the industry expected. A 30% tax rate and a loss ban is a bold move to discourage crypto transactions, "Ritesh Kumar, a partner at law firm IndusLaw, said in a statement.
On the other hand, crypto exchange platforms see this as a powerful step in crypto regulation in India. Siddharth Menon, the founder of WazirX, wrote on Twitter that "transparency with crypto taxes is a positive step for our government."
“This removes the illegal doubts compared to the law for those who are still wondering. Now we expect the Banks to support us, ”said Menon.
So, what do you think of India imposing a 30% tax on revenue from cryptocurrencies and digital assets? Do you think it is a good step to invest in crypto in India? Let us know your thoughts in the comments below.
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