Crypto Party Over in India With 30 Percent Tax on Digital Assets

Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

WP Rocket - WordPress Caching Plugin

Must Read

Hitting hard on private cryptocurrency exchanges and apps which are luring millions, especially the young, into investing their hard-earned money in Bitcoin and other digital tokens, the government on Tuesday announced a 30 percent tax on any income from the transfer of virtual digital assets, specifying that no deductions and exemptions will be allowed.

Stressing that since there has been a phenomenal increase in transactions in virtual digital assets, Finance Minister Nirmala Sitharaman, presenting the Budget 2022-23, said that the magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.

Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent, – clearing the air around the taxation on cryptocurrencies.

Also Read

“No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Further, loss from transfer of virtual digital assets cannot be set off against any other income,” she stressed.

In order to capture the transaction details, she also proposed to provide for TDS on payment made in relation to the transfer of virtual digital assets at the rate of 1 percent of such consideration above a monetary threshold.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

“Gift of virtual digital assets is also proposed to be taxed in the hands of the recipient,” the Finance Minister said.

“No Crypto bill but taxation at 30 per cent of virtual asset transfer gains and an additional 1 per cent tax collection at the time of transfer means that party seems to be over for crypto assets and exchanges,” former Union Finance Secretary Subhash Chandra Garg, a key figure behind drafting the original Crypto bill, told IANS.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021, seeking to prohibit all private cryptocurrencies in India, was set to be tabled in the Winter Session of Parliament that began on November 29. But the Bill did not make it to the table — the second time in a year — as the chorus around the legality of digital coins and how to safeguard investors’ money grew louder.

There are an estimated 15 to 20 million crypto investors and there is no clarity on the size of the Indian crypto market.

Late last year, reports claimed that Indians have invested over Rs 6 lakh crore in crypto assets to date — a highly questionable figure, as no one has any actual idea about the kind of money being routed via crypto exchanges.

According to Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, the tax on crypto/NFTs will now make it legalized and users won’t be able to circumvent tax and other financial regularities.

Grave concerns have now been raised over the misuse of digital coins on the Dark Web for terror acts and drug trafficking by militant organizations and for money laundering and hawala-based transactions — posing a serious threat to national security and a big challenge to the security agencies in India.

Nischal Shetty, Founder, and CEO of, WazirX which is one of the leading crypto exchanges, said that the tax clarity is a welcome move.

“Overall, it’s a huge relief to see that our government is adopting the progressive stance of going ahead in the direction of innovation. By bringing in taxation, the government legitimises the industry to a large extent,” he said.

iThemes WordPress Hosting

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.



- Advertisement -
- Advertisement -


Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.


Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.


OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.


- Advertisement -
- Advertisement -
ChatGPT Reaches 100 Million Users in Two Months Microsoft’s Teams Get OpenAI-Based Features WhatsApp New Feature that Allows Users to Create Calling Shortcuts Instagram Working On Twitter-like Paid Verification Feature OnePlus Ace 2 Specs Exposed Online Realme GT Neo 5 Full Specs Revealed  Samsung Galaxy S23 Ultra: The New Android King Twitter To End Free API February 9 MLS Season Pass Now Available On Apple TV App Tesla To Increase Giga Shanghai EV Production to 20,000 Weekly 
OpenAI Releases Tool To Detect AI-generated Text Tesla Records Double Net Profit in 2022 India to Produce Upcoming iPhones: Trade Minister Japanese Professor Developed A Power Semiconductor made of Diamond Google Releases New Product for India’s Merchants Indian EV Startup Unveil Two AutoBalancing Electric Scooters OPPO Find X6 Pro Images Render via Weibo Sony Develops New Tech to Reduce Noise of Image Sensors