Budget 2022:23 Here's How Cryptocurrencies Like Bitcoin Will Now Be Taxed In India?

As was largely expected cryptocurrencies will now be taxed and probably at a very high rate. A lot of your profits on crypto currency will now go in taxes.A straight tax of 30% is payable on crptocurrencies like bitcoin, ethereum etc.

"First of all, we must take into consideration cryptocurrencies being added by the government into taxable assets which indirectly gives crypto a legible stand in the market. The introduction of a digital rupee with the blockchain is an excellent move also. The 30% tax on digital asset transfer is a bargain however no dedction is projected on the computing while loss cannot be set off on other income. Also, the TDS introduction of 1 per cent is to be seen on transfers. All in all, a great step to make digital currency a well-established form of payment and to strengthen the technology based on it," says Amit Gupta, MD, SAG Infotech.

According to Gaurav Kapoor, Director & Co-Founder, Fincorpit Consulting Private Limited, "In the last few years, Bitcoin has exploded in popularity in India. India has one of the largest markets for digital tokens, with over 10 crore cryptocurrency investors. The provision of a tax framework for virtual currency investments has long been a desire of investors. Nirmala Sitharaman, the finance minister, proposed a new tax structure for cryptocurrency investors," he says.

The transfer of any virtual or cryptocurrency asset will be taxed at 30%, according to the Union Budget 2022.

In Budget 2022, the finance minister stated that no deductions other than acquisition costs will be allowed, and no transaction losses will be carried forward on cryptocurrencies.