Virtual Digital Assets Taxed At 30 %. Budget 2022. [2 Min Read]
Budget 2022 was just unveiled today and there was certainly an uproar in the blockchain community. Memes were floating all over the internet of how crypto HODLERS did the wrong decision adopting crypto. But in all honesty, I think this is a step closer to #Indiaforcrypto.
Till now we all didnt have clarity of how this will turn out. Is trading legal or illegal or somewhere in the middle (Read my earlier article here). Well, we still don't idea regarding it as of now. But what we know for sure is that India is moving towards adopting crypto. #indiaforcrypto.
In the budget, Finance Minister of India said that, "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" The minister also said that there will be no further deduction in respect of any expenditure whicle computing such income except cost of acquisition. The loss of virtual digital assets can not be offset with any other source of income.
I understand this statement might leave many confused, since the statement itself is not that clear. It arises many questions like,
Will each transfer of assets be taxed at 30%?
Is it the gains on which it is taxed or the transfer ?
There lacks clarity for sure, but the one thing that the community can be assured of is that India is moving towards crypto. This sentence can be reinforced by talking about the proposed digital currency RBI is going to launch.