From April 1, cryptocurrency investors inIndia will be required to pay tax under the new system for Taxation of VirtualDigital Assets. The Union Budget 2022-23 clarified the imposition of income taxon crypto assets.
In the Union Budget 2022, Finance MinisterNirmala Sitharaman stated that "any profit from any virtual digital assetshould be taxed at the rate of 30%."
CRYPTOTAX RULES
FM Sitharaman stated that the system willnot enable any deductions for any expenditure or allowance while calculatingsuch income, except for the cost of acquisition.
She further stated that any loss incurredas a result of the transfer of a virtual digital asset cannot be offset againstany other revenue.
To record transaction details, the ministeralso stated that the government will make a provision for Tax Deducted atSource (TDS) on payments made about the transfer of virtual digital assets at arate of 1% of such consideration above a monetary threshold.
She also advocated that gifts of virtualdigital assets be taxed in the recipient's hands.
