The cryptocurrency situation in India has seen a lot of ups and downs in recent times. While the government has been going back and forth with crypto regulations, the netizens were confused about whether it is legal to invest in digital assets like Bitcoin, Dogecoin, Shiba Inu, and others or not. However, in the recent Budget 2022 session, India’s Finance Minister Nirmala Sitharaman announced that the government will now levy a 30% tax on income from cryptocurrencies and digital assets like NFTs.
While cryptocurrency experts and investors were expecting clarity on taxation on income from cryptocurrencies and digital assets, some of them believed that the country’s FM would not address the concern during the Budget 2022 speech. However, FM Nirmala Sitharaman did address the crypto situation and announced that the government will start levying a 30% tax on income from cryptocurrencies and virtual digital assets. The Minister further added that no set-off will be allowed in case of losses. Moreover, any gifts in virtual digital assets would also be taxed in the hands of the recipient.
For the taxation of virtual digital assets, I propose to provide that any income from the transfer of any virtual digital asset shall be taxed at the rate of 30%: Finance Minister @nsitharaman #AatmanirbharBharatKaBudget pic.twitter.com/8lnAdfnJNY— PIB India (@PIB_India) February 1, 2022
On the other hand, crypto exchange platforms are seeing this as a powerful move for crypto regulation in India. Siddharth Menon, the co-founder of WazirX, tweeted that “the clarity on crypto tax is such a positive move by our government.”
The clarity on crypto tax is such a positive move by our government 🙏✌️This essentially removes doubt of illegal vs legal for those who are still wondering.Now waiting for Banks to support us.— Siddharth ( WazirX ) (@BuddhaSource) February 1, 2022
