Budget 2022: From classification to taxes will cryptocurrency finally get clarity?

Budget 2022 has crypto exchanges and traders waiting eagerly for clarity not just on taxation but even the basics of legality and recognition from North Block.

IndiaTech, an industry association representing consumer internet startups, has written to Finance Minister Nirmala Sitharaman, seeking clarity on crypto taxation in Union Budget 2022-23. Initial indications of the proposed cryptocurrency Bill pointed towards the role of SEBI in regulating cryptocurrency as an investment asset in capital markets. But the bill was not introduced in the Winter Session as it reportedly did not garner enough consensus. As noted by the government, there are plans to make changes in the Income Tax Act to bring gains made from transactions in cryptocurrencies under the tax net.

Meanwhile while clarity is awaited law enforcement agency under the Union Ministry of Finance is scrutinising multiple crypto firms for tax evasion and has already slapped a fine on WazirX.