Finance Bill 2022 is passed today in Lok Sabha today. In this post, we have broken down what it means for Indian crypto traders and holders. As was proposed earlier, Indian crypto traders has to pay 30 percent tax on their profits, and their losses from other traders can’t be set off. Apart from buying price, no other cost can be mentioned as expenses.
Even transaction fee, which we call gas fee, that can sometimes go as high as 300 USD for a single transactions can’t be shown as expenses.
The bill was passed today in Lok Sabha and is to be put into action from 1st April 2022.
The bill also makes it compulsory to charge 1 percent TDS for every single transactions.
The bill was already proposed earlier, and the Indian crypto community members were hoping for a change before making it as a law. Everyday, we found #reducecryptotax trending on Twitter.
However, even after mass protest on Twitter, FM declared that the bill is now passed and there are no changes to what was proposed earlier.
While some of the members of LokSabha was seen opposing crypto, some were also seen asking the right questions in the house.
Ms. Sitharaman said, “There is no confusing signal. We are very clear. There are consultations going on as to whether we should regulate it very much or a little or totally ban it. After the consultations will be concluded, the matter will come out. But till then, we are taxing it also because a lot of transactions are happening and this is commonplace knowledge based on members’ comments.”
On TDS, she said, 1 percent TDS is for tracking purposes and anyone can claim it while filing taxes.
What do you think of the Finance Bill 2022 from cryptocurrency point of view? Share with us in comments.
Read more: New crypto tax in India Explained
