India has introduced the budget for the year 2022 on 1st February 2022 in this budget bill Indian Government announced the 30% taxation on income from Virtual digital assets (crypto) and the 1% of Tax deducted at source (TDS) will be applicable from 1st July 2022.
Crypto 30% tax introduced in section 115BBH
The Finance minister of India Nirmala Sitharaman said that 30% of tax will be applicable on the income from the virtual digital assets (crypto) and there is no set off will be allowed for any losses, she also said anyone transfer virtual digital assets as a gift then the recipient will be charged.
Example: If you deposit 1000 Indian rupees and buy a thousand rupees crypto and get the profit of 300rs then you have to pay 90rs of tax to the Indian government.
This section shall be inserted with effect from the 1st day of April 2023 means crypto investors should have to pay the tax for the year 1st April 2022 to 31st March 2023.
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Crypto 1% tax deducted at source (TDS)
The finance minister Nirmala Sitharaman also introduced one percent of tax deducted at source (TDS) will be charged on the payment or transfer of virtual digital assets. The gift of virtual digital assets has also been proposed to be taxed in the hands of the recipient this taxation will be applicable from 1st July 2022.
The finance minister of India also states that The Government of India will also launch blockchain-based and RBI-backed central bank digital currency (CBDC) by 2023.
At the time of post-budget media interaction, the finance minister Nirmala Sitharaman said that the government taxing income from virtual digital assets did not give them legitimacy and this issue will be handled separately in the planned cryptocurrency bill.
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Frequently asked questions about budget 2022 crypto 30% tax
From when 1 percent TDS will be applicable?
In which section Crypto taxation is introduced?
From when 30 percent Crypto taxation will be applicable?