Biznextindia : Starting from today, the government of India will collect 30 percent tax on cryptocurrencies. India’s Finance Minister Nirmala Sitharaman in Union Budget 2022 had classified cryprocurrencies as digital assets and incomes from these digital assets will be taxed at a rate of 30 percent.
Not just this, the finance minister also announced that loss from the transfer of virtual digital assets cannot be set off against any other income and there will also be a 1 per cent TDS on crypto transactions.
For example, if you have purchased crypto for Rs.15 lakh and sold it at Rs.50 lakh, your straight forward gain is Rs.35 lakh. So tax will be collected on Rs.35 lakh at a rate of 30%, which is Rs.10.5 lakh.
However, later the finance minister had made it clear that taxing cryptocurrencies does not give it legal status in India.
The government of India will also apply 1 per cent TDS on all transactions involving cryptocurrency. This means whether you make a profit or loss, you will still have to pay 1 per cent TDS. The provisions related to 1 per cent TDS will come into effect from July 1, 2022.