Tax experts say that in Budget 2022, the government can make an important announcement regarding cryptocurrency taxation and regulation.
Possible announcement regarding TDS/TCS on cryptocurrencies.
The craze of Cryptocurrency has increased a lot in the last few years. According to the report of Nasscom and WazirX, there are 10.07 crore crypto investors in the country at present. It is the highest in the world. It is believed that in this budget session (Budget 2022), a law may come to regulate cryptocurrencies. Tax experts say that if the government does not bring a cryptocurrency bill in this session, then strict rules of tax can be imposed on it. Many tax experts are also demanding to implement TDS/TCS on cryptocurrencies. In such a situation, what announcements are possible regarding cryptocurrencies in this budget, let us know about it.
TDS/TCS provisions: Tax experts say that tax deduction at source and tax collection at source can be applied for buying and selling cryptocurrencies in excess of a limit. With this, the government will have detailed information about cryptocurrency investors.
Bring under the ambit of Statement of Financial Transactions
Tax experts also say that any transaction in cryptocurrencies should be brought under the purview of SFT i.e. Statement of Financial Transaction. Presently trading companies or platforms share similar information in the buying and selling of equity and mutual fund units.
need to impose higher tax rate
Regarding the tax rate on cryptocurrencies, experts say that the tax rate should be 30 percent. At present, the way high tax rates are levied on earnings from lotteries, games, puzzle shows, crypto earnings should also be taxed accordingly.
loss should not be compensated
If there is a loss instead of earning from cryptocurrencies, that means buying at a higher price and selling at a lower price. In such cases, the facility of adjustment of loss from other sources of income should not be allowed.
Regulation possible in this budget
Let us tell you that the Reserve Bank is the biggest opponent of private cryptocurrencies. It banned cryptocurrencies in 2018. In 2020, the Supreme Court overturned this decision, after which the crypto craze boomed. For the last two years, this craze is speaking loudly. There are currently no rules regarding regulation and taxation of cryptocurrencies. It is believed that in this budget, Finance Minister Nirmala Sitharaman can announce regulation regarding cryptocurrencies and tax regulation.
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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.