While the crypto has been in the hot and trending news in Indian media because of bull run but at the same time regulation has also been a reason behind it. This crypto hype has helped to gain huge numbers of new users in India and exchanges were so happy to have this type of growth. Ultimately this is going to help the entire crypto community worldwide and crypto community is growing. We expect more people to be part of crypto space and if more people get onboarded then more money will flow that will result in price spike. This will also contribute in the increase of crypto demand and we know that this market runs on supply and demand concept.
India is one of the country where crypto is in neutral state and we can say that currently its neither legal nor illegal and that's one of the hurdle to bring institutional money in crypto. There have been news that govt is exploring the crypto possibilities and its highly expected that 2022 can be the year to have crypto regulations. Now since we don't have clear guidelines and policy for crypto so taxation is another part which matter of debate.
The Indian crypto community is keenly awaiting tax measures on crypto-related income in Budget 2022 which is set to unveil on February 1. Per reports, the government is looking out for advice from various taxation experts on this matter.
New year's budget will be shared in Feb so this year community is expecting some clarity on the crypto related income. Since people are trading crypto so there are earning money and ideally there should be clear information of tax and applicable slabs. Even now its required to pay the tax to stay compliant with income tax guidelines. Since not everyone is so updated with the process so its creating a lot of chaos for crypto investors. year 2021 has been a game changer in crypto and we have seen massive growth. I expect that year 2022 will be even better and if it happens then we are going to witness something amazing happening in crypto and this will trigger the crypto market cap spike and bitcoin can move towards 100k USD price range.
Now even trades are not charged with GST but if govt apply tax then there would probably 18% of GST applicable on this which will add some additional charges on the trade. Currently in stock market every trade is taxed for GST at 18% so its expect that this will happen with crypto too if its considered as asses like stock. Income tax slabs will follow the similar pattern like we already have but surely it will contribute for increased income tax. With this increase we can also see spike in the number of tax payers in India and of it happens then surely a good move for Indian economy.
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