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24 May, 2022
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Budget 2022: Government Imposes 30% Crypto Tax; Netizens Begin A Meme Show

On Tuesday, finance minister Nirmala Sitharaman presented the union budget for the financial year 2022-23 in the Parliament. Everyone was glued to their TV screens in order to get some relief on income tax, however, to everyone’s surprise, finance minister’s budget speech did not even had the term ‘income tax’. Besides, the announcement of 30% crypto tax got everyone talking online. Every year after the budget speech, there is a key takeaway that sparks a debate over social media and this time, union government’s announcement on levying 30% tax on virtual digital assets sparked a meme show on Twitter. Though Nirmala Sitharaman did not explicitly used the term ‘cryptocurrency’ in her budget speech, experts says that government did mean ‘crypto’ when it mentioned ‘virtual digital asset’

“I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition,” said Finance Minister Nirmala Sitharaman.

There were reports of union government planning to ban trading in cryptocurrency altogether, however, it decided to take an alternative route and imposed a tax of as high as 30% on virtual assets, effectively legitimising trading of private cryptocurrencies and non-fungible tokens (NFTs). Apart from levying tax on virtual assets, the government also shared its plans of introducing a digital currency that will be issued by the Reserve Bank Of India. Interestingly, the union government will also use the block chain technology to develop digital currency, the same that gave birth to the concept of cryptocurrency.

Earlier, the Reserve Bank Of India voiced serious concerns around trading in private cryptocurrencies and said that it may cause financial instability.  Approximately 15 million to 20 million people are cryptocurrency investors in India, with total holdings of around Rs 40,000 crore ($5.29 billion) as per industry estimates.

Check out these hilarious memes on crypto tax

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