The Crypto India community is very awaiting tax steps about Crypto’s related revenue in a 2022 budget which is set to reveal in February 1. Per reports, the government sought advice from various tax experts about this.

While the Cryptocurrency bill that is widely awaited, which will be presented in parliament during the winter session in 2021, has been postponed, the center is trying to define revenue taxation obtained by trade or investment in Cryptocurrency.

Reportedly, this center pondered whether the income from crypto-related activities could be treated as business income or capital profits. The bill treats Cryptocurrency as a commodity and proposes to separate the virtual currency based on the use of cases.

Per ET, there may be a substantial increase in tax expenses at Cryptocurrency investors, with income tax plates anywhere between 35 and 42 percent on crypto assets.

Also, the previous report noted that the government planned to implement a 1 percent GST in the exchange of cryptocurrency, which will be collected in the source, and aimed to submit a prisoner of rules from this space to Sebi.

Given that Cryptocurrency related transactions can be taxed in the highest income bracket by the center, the government can slap 18% GST in Crypto trading, report ET.

The possible classification of cryptocurrency exchanges can involve three categories: facilitators; broker, which connects buyers and sellers; And the trading platform, most electronics, provides market monitoring and trading software infrastructure to participants.

According to the media portal, the Indian Cryptocurrency policy will be powered more firmly after the government observes the rules set by the US.

Under Ambit Taxation will also come individuals who have seen crypto investment they appreciate for a year, and have further traded it for other crypto assets, without converting them in rupees.

Given that any payment, regardless of it is made in Crypto, is the income in the hands of the recipient, investors will be asked to calculate, in terms of Fiat, returns made on their Crypto assets, and pay taxes accordingly. After this is done, investors can continue to transact in Crypto assets with tax funds again.