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This is an archive article published on February 1, 2022
Budget 2022: Govt proposes 30% tax on digital assets, netizens react with memes
While presenting the Union Budget, Nirmala Sitharaman proposed no change in income tax slabs. However, proposed a reduction in corporate surcharge and said that the transfer of any virtual digital asset shall be taxed at the rate of 30%.
With a 30% tax on income from sale of digital assets, Crypto became legal in India, as Union Budget was presented.
Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2022-23 in the Lok Sabha Tuesday. With eyes glued to television screens, as citizens waited bated breath for some rebate on income tax, it was the announcement of “crypto tax” that got everyone talking online.
Presenting the budget in the Parliament, the Finance Minister proposed imposing a tax of 30 per cent on virtual assets, effectively legitimising trading of private cryptocurrencies and non-fungible tokens (NFTs).
Sitharaman said that the 30 per cent tax on virtual assets cannot be mentioned as a replacement of any other income (meaning it cannot be claimed for deduction), in addition to a 1 per cent TDS that will be charged on payments made using digital assets in order to keep a track on transactions.
The government also shared plans about a Digital Rupee, or Central Bank Digital Currency (CBDC), which will be issued by the RBI using blockchain technology starting from the next financial year.
Although the issue of taxation came up, the Finance Minister did not mention anything about the Cryptocurrency Bill for the regulation of private cryptocurrencies in her 2022 Budget speech.
I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition: FM Nirmala Sitharaman#Budget2022 pic.twitter.com/DHQvZsRyeN
— ANI (@ANI) February 1, 2022
While most people were expecting some income tax relaxation, the unexpected news about tax on cryptocurrencies and digital assets left all perplexed. As most crypto currency investors tried to get a better understanding, memes took over on Twitter, with people lamenting and poking fun seeing high rates.
Check out some of the funniest reactions here:
After 30% Tax on Transfer of Digital Assets
Crypto Owner In India Be Like : pic.twitter.com/VVj3rX4ART
— Techno Ruhez (@AmreliaRuhez) February 1, 2022
“I am in the 30% tax bracket bro”
~18 yr old kid who buys apes as NFT
— Gabbbar (@GabbbarSingh) February 1, 2022
Crypto investors after watching #Budget2022 pic.twitter.com/c7rFucj99Q
— Sagar (@sagarcasm) February 1, 2022
Crypto investors after government declared 30% tax on crypto profits. #Budget2022 pic.twitter.com/wxvxadspUa
— Pakchikpak Raja Babu (@HaramiParindey) February 1, 2022
Me accepting ₹100 profit on crypto after paying 30% tax to government 🤣🤣🤣 pic.twitter.com/PsfoRvpLK5
— Aniket Waghmare (@Aniketw1551) February 1, 2022
30% Tax on Crypto Profits….
Cryptocurrency holders right now 😂🤣#crypto #cryptocurrency pic.twitter.com/91bxI0CC9X
— Kartik Anand (@kartik_203) February 1, 2022
30% tax on #cryptocurrency
Le cryptocurrency investor : pic.twitter.com/ycs4oxH8BF
— Devrat Kumar Mahto (@devratkmr) February 1, 2022
Me who lost everything in crypto watching government declared 30% tax on crypto profits : pic.twitter.com/4RmNmimdIx
— PrinCe (@Prince8bx) February 1, 2022
30% tax on Profit from Crypto.#Budget2022 pic.twitter.com/zyXQPN3ELJ
— Nimo Tai 2.0 (@Cryptic_Miind) February 1, 2022
Salaried employee and crypto investor rn :#BudgetSession2022 pic.twitter.com/gC82rL0hj7
— CA Tushar (@Sarcasm_and_YOU) February 1, 2022
30 % tax on #cryptocurrency 🤷#Budget2022 pic.twitter.com/KUmPtKR1R3
— Garv 🚜 (ਗਰਵਿਤ) (@imgarvmalik) February 1, 2022
#cryptocurrency #Budget2022
30% Tax on Digital Assets
1% Tds
Losses cannot be set off
Crypto Investors right now pic.twitter.com/aMvKp2R0Kx— Hardik Manchanda (@Hardikman02) February 1, 2022
The Finance Minsiter also said that the Budget gives a blueprint of economy from India at 75 to India at 100, citing the four pillars of development — inclusive development, productivity enhancement, energy transition and climate action. Energy transition and climate action formed one of the central themes of the Union Budget.
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