Crypto tax in India: Made a killing investing in Bitcoin, Ethereum or Shiba Inu? 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%.
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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.
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.
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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.
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