The Indian government has tightened bolts for trading in cryptocurrencies. Right from taxation on crypto gifts to prohibiting hedge of loss in cryptocurrency with gains of another digital asset. In simple words, a loss from Bitcoin assets cannot be set off from income in ApeCoin or any other virtual digital assets as a matter of fact. A tax of 30% is levied on any income from the transfer of crypto assets. The new tax provisions are set to come into effect from April 01, 2022. This has led to mixed opinions and overwhelming responses in the blockchain industry. While investors contemplate on whether to book profits or even losses in their cryptocurrency assets before March 31, 2022.

On Friday, Lok Sabha approved taxation rules on virtual digital assets (VDAs) or "crypto tax" that was proposed in Budget 2022-23 by clearing the Finance Bill 2022. These new tax rules are set to become effective from April 01, 2022.

Under the bill, section 115BBH deals with taxes on virtual digital assets, while clause (2)(b) prohibits setting off a loss from crypto assets against income under "any other provision" of the IT Act. Also, the word "other" is dropped for VDAs under the bill.

With that, a 30% capital gains tax is imposed on crypto transactions. Further, a loss incurred during the transfer of the virtual asset will no longer be allowed to set off against any income calculated under the “other" provision of the IT Act as the word "other" has been removed.

That means, no matter what your income level is from crypto assets, they will be liable for the 30% tax rate from April 01, 2022. Taking this into consideration, if an investor decides to book their profits or losses in their crypto assets before March 31 then he or she will pay