Hitting hard private cryptocurrency exchanges and apps which are luring millions, , the government announced a 30 per cent tax on any income from the transfer of virtual digital assets, specifying that no deductions and exemptions will be allowed.
Finance Minister Nirmala Sitharaman, presenting the Budget 2022-23, said that the magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.
"Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent," she said.
"No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition," stated Sitharaman.
In order to capture the transaction details, she also proposed to provide for TDS on payment made in relation to transfer of virtual digital assets at the rate of 1 per cent of such consideration above a monetary threshold.
"No Crypto bill but taxation at 30 per cent of virtual asset transfer gains and an additional 1 per cent tax collection at the time of transfer means that party seems to be over for crypto assets and exchanges," former Union Finance Secretary Subhash Chandra Garg said.
(With inputs from IANS)
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