Tax experts are hopeful that in the upcoming budget, the government can clear the confusion over the taxation of income from cryptocurrencies. At present, there is no special provision in the Income Tax Act regarding this.
Cryptocurrency Taxation in Budget 2022: Even though there are no clear rules regarding the regulation of cryptocurrency in India, but despite this, its popularity is increasing continuously. A bill to regulate cryptocurrencies was expected to be introduced during the winter session of Parliament, however it was not introduced. Now it is expected that the government can introduce a bill in the budget session. However, crypto industry sources, investors and traders expect a proper tax policy framework on crypto earnings in the upcoming Budget 2022.
Tax experts are hopeful that in the upcoming budget, the government can clear the confusion over the taxation of income from cryptocurrencies. At present, there is no specific provision in the Income Tax Act regarding tax on income from cryptocurrencies. Archit Gupta, Founder and CEO, ClearTax, says, “There are many confusions regarding the tax rules related to crypto. For example, decisions can be taken in this budget on things like its classification, applicable tax rates, TDS/TCS and GST on the purchase and sale of cryptocurrencies.
Indigo shares fell more than 5 percent, SpiceJet at 52-week low, experts gave this advice regarding aviation stocks
Income tax slabs expected to change
The Finance Ministry may change the personal income tax slab in this year’s budget. Many experts believe that the common man is still confused about the two tax regimes. Gupta says that the government can consider increasing the highest tax slab from Rs 15 lakh to Rs 20 lakh. Or it may allow some deduction to make the new system even better. Budget 2021 did not give any major relief to the salaried class.
Standard deduction and work from home deduction
Salaried employees are expecting ‘Work from Home’ allowance in the coming Budget 2022. He is expected to get tax relief on the additional expenses he had to incur to do office work from home during the pandemic. Allowing deduction for such expenses will increase take-home salary and at the same time create demand for goods and services in the country.
Air India is now commanded by Tata Group, Tata Sons chairman said – will make a world class airline
Expected to increase the limit of 80C and Section 80D
In this budget, the limit of section 80C and section 80D is also expected to be increased. Also, due to higher direct tax collection during this financial year, these limits are also expected to be increased. Higher deduction may be allowed under section 80C for Equity-Linked Savings Schemes (ELSS). Or a separate limit system can be introduced to promote mutual fund investment in India. In addition, a special COVID expense deduction may be allowed under section 80D or 80DDB to provide tax relief to COVID-19 patients and their families.
Tax relief expected for NBFC start-up sector
Anil Pinapala, CEO and Founder, Vivifi India Finance says, “In the upcoming Union Budget, we want the government to make room for the possibility of co-lending between banks and fintech companies. Which in turn will benefit small businesses. We expect the tax regime to be liberalized in this budget keeping in mind the role of the NBFC start-up sector in economic recovery.” In the upcoming Union Budget, we seek the help of the government for such start-ups working to bring loans to all.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,