India: Crypto industry players hope for regulatory clarity in Budget 2022

ambcrypto.com:

After 2022 started with tax raids on crypto businesses in India, industry players are pushing for a bill in the upcoming Budget session. The session is scheduled for 1 February for the financial year 2022-23.

But firstly, local reports suggest that the industry wants taxation clarification. Sathvik Vishwanath, Co-Founder, and CEO of India-based trading platform Unocoin told the media that he doesn’t expect “anything amazing” from Budget 2022. But, he added,

“If at all, the income tax confusions may get cleared up.”

Meanwhile, reports cited sources that revealed that the government has got in tax experts to frame disclosure and taxation guidelines for companies and family offices dealing or holding cryptos.

Yashesh Ashar, partner at tax advisory firm Bhuta Shah & Co. told ET,

“There are companies and family offices that have several transactions during the year, and reconciliation becomes a really difficult process. Further, the set-off of losses from cryptocurrency transactions with other business income also requires clarity.”

We know that major cryptocurrency service providers are under investigation in India on suspicion of possible tax evasion. With Zanmai Labs’ WazirX recently pulled up for alleged evasion of 400 million rupees in goods and services tax (GST). In this regard, Nischal Shetty, CEO of WazirX said,

“Besides regulatory clarity, we expect better clarity from the government on crypto taxation. India has been witnessing an economic recovery despite the Covid waves. A regulatory clarity will give the crypto sector a boost, accelerate its growth and potential to contribute to our $5 trillion economy vision.”

The report also reiterated that the framework might bar companies from setting off “speculative” losses