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%.

By: Trends Desk
Updated: February 1, 2022 05:41 PM IST

4 min read

Budget 2022, Budget 2022-23, Union Budget 2022, Nirmala Sitharaman, budget 2020 crypto tax, budget 2022 digital asset tax, indian express

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).

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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.

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:

https://twitter.com/GabbbarSingh/status/1488416555683938304

https://twitter.com/HaramiParindey/status/1488405022555586562

https://twitter.com/Prince8bx/status/1488406973460938755

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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