How will taxation on Crypto work

India’s crypto taxation regime is ultimately here! The Government has accepted a conservative stand on a tax of crypto assets by announcing a flat 30% on revenue from such income. In her Budget Speech 2022, Finance Minister Nirmala Sitharaman said that 30% tax would be charged on income from the transfer of virtual digital assets. She further said no set-off will be allowed in case of losses. Also, gifts in virtual digital assets would be taxed in the hands of the recipient.

taxation on Crypto

There was no negative impact on the prices of most of the popular crypto tokens including Bitcoin, ETH, WRX, SOL, ADA, DOGE, MATIC listed on Indian exchanges. The crypto industry and experts welcomed the 30% tax rule for digital assets income.

She also said the Digital Rupee will be issued by the RBI using blockchain technology starting from the next financial year. The introduction of digital currency by the central bank will lead to cheaper and faster currency management.