Close Menu
Ifuntv.coIfuntv.co
    Facebook X (Twitter) Instagram
    Ifuntv.coIfuntv.co
    • Home
    • News
    • Business
    • Technology
    • Entertainment
    • Lifestyle
    • Health
    • Education
    • Fashion
    Ifuntv.coIfuntv.co
    Home»Business»5 tax rules that Budget 2022 could impose on cryptocurrencies
    Business

    5 tax rules that Budget 2022 could impose on cryptocurrencies

    Leo TolstoyBy Leo TolstoySeptember 29, 2022
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    There is no law on the books in India that controls, restricts, or outright bans the purchase, sale, or exchange of virtual currencies. As a result, it is not against the law to engage in the trading, buying, dealing, or mining of cryptocurrencies or to operate a cryptocurrency exchange. 

    If the Indian government does not outright ban cryptocurrency trading, it may put a very regressive tax system on the industry. Cryptocurrencies should be taxed in the following manner, taking into account the market size, the quantity, and the risk involved.

    • Investment-grade status

    The Income-tax Act of 1961, specifically Section 2(14), may classify cryptocurrencies as capital assets if they are bought by taxpayers for investment purposes. Because of this, any bitcoin profit you calculate with the bitcoin profit calculator will be treated as capital gains.

    On the other hand, if the taxpayer engages in considerable and frequent cryptocurrency transactions, it is reasonable to infer that the taxpayer is engaged in cryptocurrency trading.  In this instance, cryptocurrency sales proceeds are treated as business income and subject to taxation as such. 

    • Provisions for Income Tax withholding and Payment of Other Taxes

    The government is strongly encouraged to implement new TDS and TCS laws on the sale and purchase of cryptocurrencies in order to track the monetary activity of those involved in the market and taxes on crypto exchange. 

    The cryptocurrency marketplaces that facilitate the buying and selling of digital currencies should be required to deduct and collect taxes on behalf of the government. The government should create a level below which such deductions and tax collections are not required, protecting the interests of small investors.

    • Substantial Formatting Time (SFT) Reporting

    To facilitate the reporting of major financial transactions to the Income Tax Department, the Statement of Financial Transaction (SFT) was created. It is suggested that cryptocurrency purchases and sales be included in the scope of reporting in the Statement of Financial Transactions. Similar reporting occurs when trading businesses buy and sell shares or units of a mutual fund.

    • Steeper tax rate

    There has to be a higher tax rate on crypto profits implemented by the government. To level the playing field with other forms of gambling, such as the lottery, game shows, riddles, etc., the profits from the sale of cryptocurrencies should be subject to a 30% tax rate.

    • Allowing a loss to be deducted from other sources of income 

    The value of a cryptocurrency may change rapidly and without warning. For these reasons, and to deter investment in virtual currencies, the government should not permit the offset of cryptocurrency trading losses against other revenue for taxes on crypto exchange. Furthermore, it shouldn’t let you deduct cryptocurrency losses from future cryptocurrency profits.

    Binocs allows you to integrate your cryptocurrency exchanges at any time and from any location. Binocs will quickly compute your cryptocurrency taxes even if you simply give it read-only access.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Leo Tolstoy
    • Website

    Recent Posts

    Your Guide to Term Life Insurance in San Antonio: Affordable Protection for Your Loved Ones

    May 1, 2025

    How a Phone Photo Printer Brings Memories to Life in a Digital World

    April 16, 2025

    The Practical Benefits of Using an Electric Utility Wagon for Everyday Tasks

    April 16, 2025

    Enhancing Off-Road Adventures: Why Accessories Matter for Polaris RZR and Similar UTVs

    April 16, 2025
    Categories
    • App
    • Automotive
    • Beauty Tips
    • Business
    • Car
    • Digital Marketing
    • Education
    • Entertainment
    • Fashion
    • Games
    • Health
    • Home Improvement
    • Internet
    • Law
    • Lifestyle
    • News
    • Nutrition
    • Technology
    • Travel
    • Contact Us
    • Privacy Policy
    Ifuntv.co © 2025, All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.