The government may consider levying TDS/TCS on the sale and purchase of crypto currencies above a certain threshold in the upcoming Budget, and such transactions should be brought within the ambit of specified transactions for the purpose of reporting to income tax authorities, according to Nangia Andersen LLP Tax Leader Aravind Srivatsan. In addition, a 30% tax rate should be levied on income derived from the sale of crypto currency, similar to winnings from lotteries, game shows, puzzles, and so on, he said. Speaking to PTI about what the government's Budget 2022-23, which will be unveiled on February 1, could have in store for the crypto industry in India, Srivatsan said that currently, India has the highest number of crypto owners globally, at 10.07 crore, and that according to a report, Indians' investment in crypto currency could reach USD 241 million by 2030. "A bill to regulate crypto currencies was expected to be introduced during Parliament's Winter Session." It was not, however, introduced, and it is now expected that the government will take up this bill during the Budget Session. If the government does not prohibit Indians from dealing in crypto currencies, we anticipate that the government will impose a regressive tax regime on crypto currencies," he said. He stated that due to the size of the market, the amount involved, and the risk associated with crypto currencies, certain changes in the taxation of crypto currencies may be made, such as bringing them under the provisions of tax deducted at source (TDS) and tax collected at source (TCS) above a threshold limit, which will help the government obtain the "footprints of the investors." Both the sale and purchase of crypto currencies should be included in the Statement of Financial Transactions (SFT). According to him, trading companies already report the sale and purchase of mutual fund shares and units. The income-tax law includes the concept of SFT or reportable account to keep track of high-value transactions undertaken by the taxpayer. This assists tax authorities in gathering information on certain prescribed high-value transactions carried out by any person during the fiscal year. Financial institutions, corporations, and stock market intermediaries are all subject to SFT reporting. According to Srivatsan, income derived from the sale of crypto currency should be taxed at a higher rate of 30%, similar to winnings from lotteries, game shows, puzzles, and so on. The government had planned to introduce a bill regulating crypto currencies ahead of the winter session of Parliament, which ended on December 23. The bill comes amid concerns that such currencies are being used to deceive investors with false claims.