The Union Budget for 2022-23 which will be presented in the Parliament on February 1, Tuesday by Finance Minister Nirmala Sitharaman is expected to tax crypto currencies, especially those backed by stable currencies like US dollar. Though a final decision on this is still under process from the RBI, the government may go for taxing these digital instruments.
The FM may propose a Bill amending the Income Tax Act for the purpose during the session which will last for two months with a month long break in between. The crypto currencies will be treated as assets like real estate and capital investments and a hefty tax will be levied to mop up enough revenues to the exchequer.
If this happens, it will have to two consequences – first the present trend of people buying crypto currencies will continue, though they cannot be used as currencies in real terms as just as a way of speculative investments and the second is other investment opportunities like Real Estate and Gold will lose their attraction in the coming days.
