Taxation on virtual digital assets
12-04-2022 10:51:23
In Budget 2022, the government said it would tax income from the transfer of any virtual digital asset, including cryptocurrency. From April 1, income from cryptocurrency will be taxed at a flat 30 percent.
As per the proposed Section 115 BBH of the Income-Tax Act, 1961, a loss from transferring a virtual digital asset will not be allowed to be set off against income arising from the transfer of another virtual digital asset. A 1 percent tax deductible at source under Section 194S of the Income Tax Act will apply to every single crypto transaction from July 1, 2022. TDS will be deducted at the time of redemption, whether one makes a profit or loss.
