India’s crypto tax regime is finally here! The Government has taken a conservative stand on taxation of crypto assets by announcing flat 30% on income from such income. In her Budget Speech 2022, Finance Minister Nirmala Sitharaman said that 30% tax would charged on income from transfer of virtual digital assets. She further said no set off will be allowed in case of losses. Also, gifts in virtual digital assets would be taxed in the hands of the recipient.
Noting the phenomenal increase in transactions in “virtual digital assets”, Sithraman said the magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.