InvestorQ : Is it correct that the Union Budget 2022 could see taxation imposed on cryptos?
Rutuja Nigam made post

Is it correct that the Union Budget 2022 could see taxation imposed on cryptos?

Answer
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4 months ago
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Let me clarify that Crypto transactions are still subject to tax as any other income earned in India is however there is a lot of uncertainty about the whole thing. This budget, among other things, is expected to provide greater clarity. For one, the budget may look at making crypto transactions more accountable, taxable and also liable for greater transparency and compliance subjecting it to specific audit trail reporting.

One general expectations is that the Budget 2022 could levy TDS or TCS (tax collection at source) on sale and purchase of cryptocurrencies above a certain acceptable threshold. These transactions are most likely to be subjected to higher rates of tax at around 30%. India already has the highest number of crypto owners at over 10 crore and most of these are hardly getting property reported. Crypto Bill may be passed in Budget Session in Feb-22.

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