Friday, December 1, 2023

Budget 2022 expectations: clarification on cryptocurrency taxation

India’s Finance Minister Nirmala Sitharaman will present her fourth Union Budget on February 1, 2022, and taxpayers are eagerly awaiting pronouncements to boost the economic sentiment. As India seeks to become a USD 5 trillion economy by 2025, here are a few top market expectations for taxation.

Expectations related to Direct tax

1. The 80C deduction (up to Rs 1.5 lakh annually) should be significantly increased. 2. To make the optional concessionary tax structure, which goes into effect in April 2021, more appealing, elevate the income cap for laying the maximum 30percentage tax rate to Rs 15 lakh. 4. There is no LTCG tax in major economies. LTCG on the sale of Indian-listed equity shares is expected to be eliminated in India as well, increasing stock exchange investment. Furthermore, tax rates for companies engaged in R&D activities should be reduced to 15% or less, and a weighted exemption for in-house R&D spending should be permitted.

Expectations related to Indirect tax

1. The Customs duty structure for electric vehicles as well as ancillary elements, as well as renewable energy sources devices and related systems, is likely to be recognized. 2. With enhanced attention on exports, semiconductor manufacturers should expect sector-specific exemptions. 3. Budget allocations for broadening the Production Linked Incentive (PLI) framework to also include sectors such as leather, as well as additional reward systems to encourage companies to expand manufacturing in those sectors. 4. Presently, the state is looking into 400 customs duty exemptions. 5. Importation of diagnostics is excluded from customs duty, a customs dispute resolution forum is established, and the existing web platforms are merged into a single digital platform.

For more information, stay connected with us and we will be bringing you the latest updates related to cryptocurrency, NFTs, and blockchain technology. Tap into the world of crypto and stay up-to-date.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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