Crytocurrency tax: How will the Budget 2022 rules impact crypto investors?

business-standard.com:

India saw an unprecedented growth in the number of crypto investors as Bitcoin skyrocketed to an all-time high of about $67,000 last September before falling. On February 1, the Union Budget introduced a special provision to tax profits from cryptocurrency investing, removing any ambiguity on how such gains must be treated. The government for the first time defined ‘virtual digital assets’, which includes cryptocurrencies and Non Fungible Tokens or NFTs. The broad definition of virtual digital asset (VDA) could also mean more than just cryptocurrencies and NFTs. From April 1, a flat 30% tax will be applicable on profits from the transfer of crypto assets, irrespective of the holding period. At that tax rate, crypto gains are treated the same way winnings from gambling, lottery or horse-racing Not just this, to track the money trail, a 1% TDS on payments made for transferring digital assets will be levied above a specified monetary threshold from July 1. Importantly, losses cannot be set off against any other income. Tax expert Nishant Shah explained how the provisions work:

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