The government has finally announced to bring cryptocurrencies under the tax net. Finance Minister Nirmala Sitharaman announced the Union Budget on Tuesday, in which she said that the government is bringing cryptocurrency under the purview of taxation. Now crypto investors will have to pay tax on earnings from crypto. It is proposed that income from cryptocurrencies will now be taxed at 30 percent.
If you are interested in or interested in investing in the cryptocurrency market then you need to know this big change on digital assets and cryptocurrencies. Apart from the 30 per cent tax on income from cryptocurrencies, the Finance Minister also announced that the transfer of digital assets will also attract a tax of 30 per cent.
The Finance Minister said that transfer of digital assets above a limit will attract one percent TDS. At the same time, digital assets received as gifts will also be taxed. It has been said in the budget that there will be no deduction on expenses except the cost of acquisition.
No cryptocurrency bill
Before the winter session of Parliament in December 2021, there was information that the government may introduce a bill on crypto – the Cryptocurrency and Official Digital Currency Regulation Bill 2021. However, the government again said that discussions are still going on on many aspects in the bill, so no announcement was made on crypto in that session and now directly in the budget, the government has brought crypto under taxation.
It was only after hearing the news of the crypto bill that there was a lot of impact on the crypto market. However, later the market improved, so now it remains to be seen what is the effect of taxation on the market. The government has also announced the digital rupee of RBI. The Central Reserve Bank may issue its official digital currency in the next financial year.
