Budget 2022: Tax on cryptocurrencies, its definition and more

Cryptocurrencies may soon start attracting a tax rate of 35% to 42% as the government could decide to treat its profit as business income.

As per a report in the ET, the government is looking to fine-tune the definition of income and gains from crypto assets in the upcoming budget.

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Apart from that, the government could also bring in goods and services tax on cryptocurrencies, the report mentioned. This means the government will slap an 18% GST on trade and this amount would be paid by an individual who is buying any cryptocurrency.

Currently, there is no preparation for the bill, the government is waiting for the US policies to take shape which are expected in the next 2-3 months. India may only decide its way forward after that, as per the report.

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