Union Finance Minister Nirmala Sitharaman announced on Tuesday that income from digital asset transfers will be taxed at a rate of 30 percent. This move is seen as ‘crypto tax’.
Presenting the Union Budget 2022-23 in the Lok Sabha, Sitharaman said gifts received in the form of cryptocurrencies will also be taxed at the same rate. Cryptocurrencies gifts will be taxed at the receiver’s end.
“I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition,” Sitharaman said.
The Finance Minister also announced that the Reserve Bank of India will issue a digital rupee in the next financial year.
Anshuman Khanna, Director, ValPro, said, “The Government has declared its intent to go after crypto currencies by introducing its own digital rupee and seeking to tax gains on sale of crypto currencies at the rate of 30 percent. Further to track down crypto gains a TDS of 1 percent has also been proposed whereby persons engaging in crypto trading will not be allowed to escape the tax net.”