Social media users reacted to the 30% tax announced on transfer of digital assets in the Union Budget 2022. 

FM Nirmala Sitharaman presented the budget on Tuesday with digital assets being a key highlight. 

While some Twitter users were delighted for the budget cleared the air around the lagalisation of cryptocurrency, others were disappointed to see a 30% tax on the transfer of digital assets.

“I find it rather amusing that those who got ZERO benefits from the budget are overjoyed by the 30% crypto tax. This is PRECISELY what is wrong with our people,” a Twitter user said. 

This budget cleared the air around crypto for once and all. Don’t have to worry about the govt snatching away it’s legality anymore, plus the 30% tax on it proves that crypto is here to stay. In it for the long haul!” another one tweeted. 

“Budget is taxing crypto gains. Just to tell you all that the taxes will have to be paid in real currency and not your everyday coins launched by unknown ppl,” law and policy writer Ashutosh Muglikar tweeted. 

Here are some other reactions:

The Finance Minister also said that to bring digital assets under the tax net, a 1 % TDS (tax deducted at source) on transactions in such asset classes above a certain threshold is proposed. 

“Gifts in crypto and digital assets will also be taxed,” FM Sitharaman said.

The tax proposals will come into effect from April 1 after the passage of the Union Budget in Parliament.

Meeting demands from large sections of industry, the FM said the RBI will launch a ‘Digital Rupee’ based on blockchain technology in 2022-23.

Digital currency and assets like NFTs (non-fungible tokens) have gained traction globally over the last couple of years. Trading in these assets has increased manifold with cryptocurrency exchanges being launched. However, India did not have a clear policy on either regulating or taxing such asset classes.

NFTs are unique digital assets with verified ownership rights and the details are stored on a blockchain.