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Investors Are Expecting An Address On The Crypto Currency In The Budget 2022 Session

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The Union Budget 2022-23, will be presented by the Union Finance Minister Nirmala Sitharaman, on February 1. The budget session will continue from January 31 to April 8. Investors have a lot to expect from the upcoming budget. The equity investors will wait for the government's policy measures, which will positively impact the companies in the future, and help the falling equity markets to boost in the country. However, people who have been interested in alternative investments like cryptocurrencies, are also waiting for the budget.

 
Investors Are Expecting An Address On The Crypto Currency In The Budget 2022 Ses

The Indian government, the central bank RBI, along with the investors, have been concerned about digital currencies for a very long time. In the Winter Session of the parliament, it was expected that the union government could place the crypto bill. The digital currencies are not regulated by the RBI or SEBI in the country. So, government officials and economists are thinking that multiple frauds and irregularities can happen, while people are trading in crypto coins.

Hence, the investors are expecting that the government might announce and present the crypto bill in the upcoming budget session. However, if the government does not present the crypto bill because it is a very complicated and complex subject. The crypto coin-related factors in the legislation will also require some changes in a few existing laws. But, investors are expecting, at least the Finance Minister can announce the associated rules and regulations. Additionally, in the parliament and among the economists, there is no clear consensus regarding the taxation framework of digital currencies. So, investors will expect a heads-up on that front too, although a complete taxation rule will take much longer time to be presented.

According to crypto exchanges, the "government should consider all aspects of crypto taxation and have a reasonable tax regime for the sector. A GST of 18% can be charged on fee collected by exchanges in enabling buying and selling of cryptos. Profits of investors from crypto investments can be charged a short-term capital gains tax of 30% and a long-term capital gains tax of 20%. Industry bodies have also said that taxes on trading and investment in cryptos should be similar to trading and investment in commodities and securities. The industry has also sought clarity on reporting procedures and whether TDS will be applicable," CNBC in an article reported.

 

Most importantly, people interested in the alternative investment instruments are also waiting eagerly for the launch of the Reserve Bank of India's (RBI) digital currency, in the upcoming few months. In the budget 2022, an announcement regarding the same is also anticipated.

Cryptocurrencies, like Bitcoin, Ethereum, Litecoin, etc. are some of the most popular crypto coins in terms of their market capitalizations. Investment in cryptocurrencies is not much easier and more profitable. However, after the bitcoin ban in Russia, and the global economic slowdown in the recent period, bitcoin, the largest crypto has been falling. Along with it, other large crypto coins are also sinking. At that moment, it will be very important for Indian crypto investors to anticipate the upcoming roadmap of the digital currencies in the country. FM Sitharaman's announcements will play an important role in that.

Story first published: Monday, January 24, 2022, 13:47 [IST]
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