Crypto Tax in India: Date, income tax, ITR form, TDS, deduction | Key points

You have to pay a tax of 30 per cent on any income from the transfer of any virtual digital asset.

As the ongoing financial year 2021-22 draws to a close, there has been a lot of chatter pertaining to crypto-tax in India. The central government in Union Budget 2022 proposed the introduction of a specific tax regime for virtual digital assets.

Finance Minister Nirmala Sitharam in the Union Budget announced the details of the taxation of virtual digital assets, stating that the magnitude and frequency of transactions in virtual digital assets have increased phenomenally.

The government has proposed any income from the transfer of any virtual digital asset be taxed and a provision has been made for Tax Deducted at Source (TDS) on payment made in relation to the transfer of a virtual digital asset in order to capture the transaction details.

FM Sitharama proposed that "any income from the transfer of any virtual digital asset shall be taxed at the rate of 30 per cent."

Basically, this means you have to pay a tax of 30 per cent on any income from the transfer of any virtual digital asset.

Experts opined that the 30 per cent tax levied on income arising from the sale of cryptocurrency is similar to the tax rate on winnings from lottery, game shows, puzzles etc, PTI reported.

In budget 2021, it was also proposed that the Government would make a provision to provide for TDS on payment made in relation to the transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.