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In line with the expectations on the Indian Government 2022 budget on the taxation of Crypto Assets, the Indian Government taxed 30% on the Virtual Digital Assets.
This means the Crypto Assets including the NFTs would be taxed @ 30% as these are all classified under the Virtual Digital Assets.
This was officially announced today in the Budget Session of the Parliament today by the Indian Finance Minister.
More Details on this Taxation:
The Indian Finance Minister, Mrs. Nirmala Seetharaman in her budget speech today in the Parliament narrated that due to the phenomenal increase that happened in the transactions of the digital assets in India. Due to the magnitude and frequency of these high transactions, it is no other way but to bring it under a specific tax bracket. Therefore, all these virtual assets would be brought under the tax slab of 30%. It is to be noted that no deduction or allowance would be allowed in this related computation for tax. It means, if you book profit you need to pay 30% tax from the Profit. This would not be compensated from other loss that you have incurred in other virtual assets. Furthermore, there would be a Tax Deducted at Source (TdS) at the rate of 1% for the transfer of virtual digital asset. The monetary threshold limit would be there for the transfer. If you gift the Virtual Digital Asset, the recipient has to pay the tax and not the donor.
She also said that a Central Bank Digital Currency (CBDC) would be introduced by the Reserve Bank of India from 2022-2023. This would be a digital rupee on the block chain technologies.
Final Note
It is considered as a huge relief for most of the Crypto Players as the Government has stepped in to regulate this Crypto Investment Sector. More relief has also come to the investors too that there is no total crypto ban. Now through this announcements, there are more clarity in the area of Virtual Digital Assets and Confidence has boosted a lot.
