Budget 2022 tax announcements for cryptocurrency in India states -
- Income (Any gains or losses made from a crypto asset held less than 12 months / Financial year) from any transfer of crypto, even gifts, would attract a 30% tax
- Investors will also have to face additional 1% TDS (Tax Deducted at Source) on digital asset transfers above a certain threshold, which will allow it to capture transaction data with the government.
- In addition, investors cannot get any deductions and won’t be allowed to set off losses from transfer of such assets against any other income.
- As a disclosure requirements the taxpayers will have to report income from crypto through a separate column while filing I-T returns.
- RBI-backed ‘digital rupee’ to be launched in FY23.
Conclusion: The higher tax rate also hints at tougher crypto regulations & government wants people to be aware of the higher volatility & risk into crypto market before investing into crypto.
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