Budget 2022: 30% tax on cryptocurrency income brings clarity, legitimises crypto, say experts

Finance Minister Nirmala Sitharaman said that any income from transfer of any virtual digital asset shall be taxed at 30%. 

New Delhi: Finance Minister Nirmala Sitharaman, on Tuesday (February 1) announced that investors’ will have to pay a 30% tax will on income earned by making investments in cryptocurrency.

“Cryptocurrencies will be taxed at 30%. Any income from transfer of any virtual digital asset shall be taxed at 30%. No deductions and exemptions are allowed. Loss from the transfer of such assets cannot be set off against any other income,” Finance Minister Sitharaman said while presenting the Union Budget 2022.   Industry players and experts are hoping that the introduction of a 30% tax on crypto income will clear the roadmap for the crypto industry. 

“Government has brought in 30% tax on cryptos income, where no deduction for any expenses except cost of acquisition shall be allowed. Gift of virtual assets shall also be taxed for the recipient. This clears the air on taxes for cryptos, however, there are several types of incomes people earn from cryptos and hopefully more clarity will be available in the Budget documents,” said Archit Gupta, Founder and CEO of Clear.