Cryptocurrency, secured by cryptography, is modern traders’ leading virtual asset. Do you know the best part about the dynamic shift in the world of virtual digital assets in 2022? Cryptocurrency and other such digital assets are now publicly fostered by the Indian government. How sure are we about that? Well, it is simply clear from the recent proposals on cryptocurrency regulation in India.
While introducing the budget for the financial year 2022-2023, Finance Minister Nirmala Sitharam addressed cryptocurrency and NFTs (non-fungible tokens) under the umbrella term – virtual digital assets. As per the announcement of the minister, virtual digital assets are now subject to taxes.
What is so good about cryptocurrency taxation in India? Glad you asked.
So, introducing a 30% tax on returns from trading of digital assets is considered a “progressive” move because the action is an evident step forward towards digital India. A trader who will earn a profit (as small as it may be) on the sale of crypto will be liable to give 30% tax on the earned profit.
The 30% tax on returns also includes 1% TDS (tax deducted at source) which is to be deposited by the facilitator on the online trading platforms.
Although the government might tweak around the core features of cryptocurrency taxation in India, at present it has decided to allow individuals to file taxes beginning April 1, 2022, till July 31, 2022. The government expects traders of virtual currencies to pay the taxes on gains earned through trading the same.
It is highly advisable to contribute your fair bit towards cryptocurrency regulation in India, thereby making the digital presence of currencies safer and more reliable.