Budget 2022: Cryptocurrencies taxed at the rate of 30% in India
Virtual digital assets such as cryptocurrencies, NFTs, blockchains have gained popularity in India. Now, these shall be subject to tax in India under Budget 2022.
The union budget 2022 was presented by Finance minister, Nirmala Sitharaman, in the Lok Sabha on Feb 1, 2022. The budget addresses a tax scheme for virtual digital assets. Virtual digitals assets such as cryptocurrencies, NFTs, blockchains etc., have gained pace in transaction since COVID-19 pandemic. The year 2020 onwards, digital assets became popular in India.
In 2021, discussions and debates took to stage when the transactions of such assets seemed unmonitored and unaccounted for. Even advertising for digital assets became a disputed issue. Another major factor behind the concern was that whether Indian demography was prepared to make such transactions and measures against fraud were under limelight.
The budget proposed that the immense popularity of virtual assets has made it an imperative to introduce a tax scheme for such assets. Thus, any income from the transaction of digital assets is subject to taxation. It shall be taxed at the rate of 30%. There shall not be any deduction in any expenditure or allowance while computing income generated from the transaction of digital assets. However, the exception is maintained for cost of acquisition.