Crypto Tax rules in India How will cryptocurrency assets be taxed from April 1

Ecrypto.co.in (Gangadhar)

Cryptocurrency investors in India will have to pay tax under the new scheme for Taxation of Virtual Digital Assets from April 1

FM Sitharaman said that the scheme would not allow any deduction in respect of any expenditure or allowance while computing such income except cost of acquisition

CRYPTO TAX RULES

Further she said, loss from transfer of virtual digital asset cannot be set off against any other income

CRYPTO TAX RULES

Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient, she said.

CRYPTO TAX RULES

Tax Deducted at Source (TDS) on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.

CRYPTO TAX RULES

From April 1, a 30 per cent I-T plus cess and surcharges will be levied in the same manner as it treats winnings from horse races

YOUR CRYTPO ASSETS WILL BE TAXED

One per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient

YOUR CRYTPO ASSETS WILL BE TAXED

The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals are required to get their accounts audited under the I-T Act.

YOUR CRYTPO ASSETS WILL BE TAXED

The provisions related to 1 per cent TDS will come into effect from July 1, 2022, while the gains will be taxed effective April 1.

YOUR CRYTPO ASSETS WILL BE TAXED

Taxation of cryptocurrencies by disallowing set off of any losses with gains from other virtual digital assets.

TAXATION FOR CRYPTOCURRENCY

As per the amendments to the Finance Bill, 2022, circulated among the Lok Sabha members, the ministry proposes to remove the word

TAXATION FOR CRYPTOCURRENCY

This would mean that 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

TAXATION FOR CRYPTOCURRENCY

According to the Finance Bill, 2022, a VDA could be a code or number or token which can be transferred, stored or traded electronically

TAXATION FOR CRYPTOCURRENCY

The VDAs will include prevailing cryptocurrencies and non-fungible tokens (NFTs) which has gained fad over the past couple of years.

TAXATION FOR CRYPTOCURRENCY

Other stories

How Crypto Investing Work

02

Is crypto a good investment?