30% tax on crypto income in India from April 1, 2022

india govt

All virtual digital assets (VDAs) and their income will be taxed. Those who make money by converting Bitcoin into NFTs are also taxed.

The Finance Bill, 2022 was approved in the Lok Sabha, meaning the measures of the Budget 2022 on crypto tax would come into effect. The planned 30 percent tax on crypto income would begin on April 1, 2022, while the 1 percent TDS on payments in virtual currencies would begin on July 1, 2022.

Before the law went into effect, the government recommended tightening taxes on cryptocurrencies by not allowing the netting of any losses against gains from other virtual digital assets.

All Virtual Digital Assets (VDAs) and their revenues remain subject to the tax levied by the Center. Those who make money by converting Bitcoin into NFTs will be taxed. Under the budget, cryptocurrency and other virtual asset transactions would also be subject to a 1% withheld at source tax (TDS).

Many investors try to evade tax

Crypto investors in India are taxed at a rate of 30% on the profits they make from cryptocurrency transactions. As a result, many investors are reportedly moving their crypto assets to personal wallets outside of India to evade the new tax regime.

In fiscal year 2020/21 (the advisory year 2021/22), the deadline for filing the Indian Citizens Return (ITR) is March 31. When COVID-19 necessitated an extension, the original July 31 deadline was moved to December 31, 2021, then February 15, 2021, and finally March 15. An Income Tax Act gives taxpayers three months to file a late ITR, so the due date for ITRs is March 31. filing their tax returns (ITR) before the deadline, they may be subject to penalties and interest charges from the Income Tax Department.

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