Income tax on cryptocurrency introduced: Investors may see a sell off in the coming weeks
income tax on digital assets, that would include cryptocurrencies and Non-Fungible Tokens (NFTs), this is set to spark a sell off from Indian investors, say industry trackers. The finance minister on Tuesday introduced a 30% income tax on returns from digital currencies. This would mean that investors will have to cough up 30% tax on the returns they make from trading or investing in cryptocurrencies. Experts say that the 30% tax would also not be allowed to be set off against any other losses or expenses. This is only going to increase the tax burden for cryptocurrency investors, who will have to shell out a third of their returns towards taxes.
Presented ByDid you Know?
Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs
View Details » Budget 2022: Positive for crypto segment as digital asset acquisition to be taxed at 30%Giving clarity on taxation of cryptocurrencies and other virtual assets, Finance Minister Nirmala Sitharaman on Tuesday proposed a 30 per cent tax on income from transactions in such assets. Also, to bring such assets under the tax net, she proposed a 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets will also be taxed, she said. The tax proposals will come into effect from April 1 after the passage of the Union Budget in Parliament.The government has also plugged loopholes saying that there also be income tax if crypto assets are “gifted” by anyone. The recipient of such a gift will have to pay 30% tax. ET had first written on December 4 that the government was
Read more on economictimes.indiatimes.com
