Even as Cryptocurrencies would be taxed from April 1, 2022 here is a look at what experts are saying and believe. Take a look at how cyyptocurrencies would be taxed.
Kunal Jagdale, Founder, BitsAir Exchange
The government has provided the clarification on the taxation policy for the individuals. Indian investors can not offset the losses arising from one crypto exchange against the profits from others. This means, even if you make a loss in one asset, you have to pay taxes on the gains on others.
The new regime of flat 30% taxation on income from crypto assets from April 1, 2022 will ebb the sentiments for the new age asset class. Though, we hope that the crypto investors will back their investment thesis and stay in with the investment for longer periods.
On the other hand, Indian exchanges are still awaiting more clarity around GST structure for crypto assets and we are hopeful that the regulators will soon come up with an investor-friendly GST mechanism.
Manoj Dalmia, Founder, Proaasetz exchange
As the new financial year starts from 1st April 2022, a new bill comes to law on Virtual Crypto Assets. As per the bill one needs to follow a specific taxation regime for Virtual Digital Asset ( VDA ) This includes flat 30% tax on profits without any slab deduction. The loss in one VDA will not be set off from profit in another VDA. Hence all loss transactions will be ignored for tax calculation and only profit will be calculated. All trading pairs be it fiat to crypto OR crypto to crypto will be a taxable event. Apart from holding and trading even gifting of VDA be will taxable in the hands of the recipients. This tax bill even covers miners as no expenses of setting up mining are allowed as deduction. Therefore mining transaction cost of purchase will be Zero. What can be set off is only the cost of acquisition/purchase on VDA.
Conclusion: Only profit will be taxed flat 30% without any set off on losses and other costs if mining is included. The only cost of acquisition/purchase on VDA will be considered.
Amit Gupta, MD, SAG Infotech
Taxation of Virtual Digital Assets will be implemented on April 1 for cryptocurency investors in India. Taxation on crypto assets was clarified in the Union Budget 2022-23.
As included in the Union Budget 2022, Minister of Finance Nirmala Sitharaman announced that virtual assets transferred in the digital world will be subject to a 30 percent tax rate.
In order to capture transaction details, the minister also stated that government would make the provision for a Tax Deducted at Source (TDS) at the rate of 1% of consideration paid in relation to the transfer of virtual digital assets.