Budget 2022: In this year’s Budget 2022, the government may decide to implement Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) on the purchase and sale of Cryptocurrencies. This information has been given by Arvind Srivatsan of Nangia Andersen LLP Tax. However, it will be applicable up to a limit.
Arvind says that in the coming budget, the government may make provision for TCS and TDS on the purchase and sale of cryptocurrencies in excess of a certain limit. And such transactions can be brought under the purview of specified transactions. Apart from this, high tax of 30 per cent can be levied on income from sale of cryptocurrencies like lotteries, game shows and puzzles etc.
Arvind further said that at present, India has the largest number of crypto owners in the world. There are about 10.02 crore crypto owners in India. According to an estimate, by 2020, the crypto currency business in India can reach $ 241 million. He further said that it was expected that a bill to regulate cryptocurrency would come in the winter session of Parliament, but it did not happen.
Now it is expected that the government will bring such a bill in the coming budget session. He said that we are hopeful that if the government does not make any provision to prevent Indians from trading in cryptocurrencies, then it can introduce a regressive tax regime for cryptocurrencies.
Budget 2022: Before the budget is presented, know how much tax is levied on the current income tax slab
Arvind Srivatsan further said that given the size of the market of cryptocurrencies, the maximum amount of money involved and the risks associated with it, there could be major changes in the provisions related to cryptocurrencies. These cryptocurrencies can be brought under the purview of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). This will make it easier for the government to identify investors. Apart from this, both the buying and selling of cryptocurrencies should also be brought under the Statement of Financial Transactions (SFT).
What is the condition of crypto in the country
At present, there is no regulation or ban on the use of cryptocurrencies in the country. The Cryptocurrency and Regulation of Official Digital Currency Bill is now expected to be introduced in the budget session of Parliament beginning January 31. The government is changing the income tax laws to bring cryptocurrencies under the tax net.
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