India: 30% Tax on CryptoCurrency from 1 April 2022
Cryptocurrency gains will be taxed at 30 per cent beginning April 1.
For a long time there were no rules to regulate cryptocurrency in India. Finance Minister Nirmala Sitharaman has proposed a law to regulate cryptocurrency in the parliament. She also proposed a cryptocurrency tax. But this did not pass for a long time. The cryptocurrency tax and proposed regulation bill have been a topic of discussion in India for some time. Now the bill has been passed by the parliament and people will have to pay tax on their cryptocurrency. Cryptocurrency gains will be taxed at 30% from 1 April. For example, if an investor purchases a cryptocurrency for ? 10,000 and sells it for ? 15,000, making a profit of ? 5,000, they must pay a 30 per cent tax of ? 1,500.
Till they sell it and make a profit, their gains will not be taxed. When you earn a profit on one token but lose on the other, you are still obligated to pay a tax of 30 per cent on the profited token. After accounting for all cryptocurrency transactions that have been done for the year, if an investor is at a loss overall with no earnings, there will be no tax to pay. Indians buying or selling crypto will have to pay a 1% TDS. This is irrespective of Profit or Loss. This will be applicable from 1st July. Even crypto gifts will be taxed.
