Budget 2022: Meme fest on Twitter as FM Sitharaman announces crypto tax

As Finance Minister Nirmala Sitharaman announced a 30 per cent tax on income from transfer of any virtual digital asset, there were some hilarious reaction from Twitter users. From it is now time to leave this world to 'tax crypto, but ethically', here’s how the internet reacted to the announcement:

Congress spokespersons Randeep Singh Surjewala and Professor Gaurav Vallabh also condemned the government for levying a 30 per cent tax on income from virtual digital assets. Surjewala asked the Finance Minister some questions in his tweet. He tweeted, “And Ms Finance Minister, please do tell the nation- Is cryptocurrency now legal, without bringing the crypto currency bill, as you tax the crypto currency? What about its regulator? What about regulation of crypto exchanges? What about investor protection?”

Professor Vallabh, on the other hand, said that the law on crypto is not yet clear but the government has already levied a tax on the same. “Madam Nirmala Sitharaman ji, No one can even think of what you had done in this budget. The law on cryptocurrency is not known. But the tax has been imposed. Wow,” Vallabh tweeted. 

Industry players like ZebPay and CoinSwitch Kuber, however, welcomed the move as they believe that this could lead to increased acceptance of crypto and its eventual legalisation. "30 per cent tax on income from virtual digital assets, while high, is a positive step as it legitimises crypto and hints at an optimistic sentiment towards further acceptance of crypto and NFTs across stakeholders in the country. The government has come a long way in its stance towards crypto from last February to today and we are confident that this will herald a new era of growth and innovation for India in a Web 3.0 world," ZebPay CEO Avinash Shekhar said. 

CoinSwitch Kuber CEO and co-chair of Blockchain and Crypto Assets Council (BACC) Ashish Singhal said that the Budget provides clarity on the taxation and government intent vis-à-vis crypto. 

"The budget provides clarity on taxation and shows the government’s intent to take a business-friendly approach while protecting the interest of consumers and the exchequer. We hope to work with the government to help bring crypto-asset taxation at par with other asset classes and participate in the central government’s vision to promote economic growth,” he said.

For the unversed, Sitharaman said that any income from the transfer of virtual digital assets will be taxed at 30 per cent and the losses accrued from these transaction cannot be offset against other income. "There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions are made it imperative to provide for a specified tax regime accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent," Sitharaman said. 

She added, “No deduction in respect of any expenditure or elements shall be allowed while computing such income except the cost of acquisition for loss from the transfer of virtual digital assets cannot be set off against any other income”.

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