Crypto tax in India: Digital assets to be taxed from April 1; all you need to know

Updated : Apr 01, 2022 08:10
|
EJ Biz Desk

Crypto tax in India: Made a killing investing in cryptos? Well, now, there are taxing times as the Government of India will levy a 30% tax on all your crypto gains from April 1, 2022.

As per Finance Minister Nirmala Sitharaman's Union Budget 2022 announcement, gain on digital assets including cryptocurrencies like Bitcoin, Ethereum, Shiba Inu, etc will be taxed flat at 30%.

Also, there will be a 1% TDS and gift tax under certain conditions that shall be paid by the receiver of the digital asset as a gift. The provisions related to 1% TDS will come into effect from July 1, 2022.

Also read/watch | Crypto heist: top 5 blockchain thefts of all time

Infrastructure costs incurred in the mining of cryptocurrencies or any virtual digital assets will not be allowed as a deduction under the Income Tax Act, Minister of State for Finance Pankaj Chaudhary has said. Also, loss from the transfer of virtual digital assets (VDA) will not be allowed to be set off against the income arising from the transfer of another VDA, Chaudhary said.

Income tax return forms from next year will have a separate column for making disclosures on gains made from cryptocurrencies and paying taxes.

The 30% tax plus applicable cesses and surcharge of 15% on income above Rs 50 lakh will have to be paid on income from cryptocurrencies, Revenue Secretary Tarun Bajaj had said in February.

Also read/watch | Crypto tax: GST could soon be implemented on digital assets

cryptocurrencyBitcoinTax

Recommended For You

editorji | World

New Zealand falls into recession with abrupt economic slowdown

editorji | Business

Dollar Pushes Indian Rupee to Record Low of 85, Fed's Policy Outlook in Focus

editorji | Business

Oil Prices Rally on Inventory Drop, Market Awaits Fed Projections

editorji | Business

SEBI Expands UPSI Definition, Strengthens ESG and Governance Frameworks

editorji | Business

Gold Imports surge in November: Commerce Ministry examining data for any calculation error