Crypto investors in India will have to pay 30 per cent tax on their profits. For instance, if one invests Rs 1, 00,000 on a crypto, and sells it at Rs 1, 25,000. The investor needs to pay the tax on the profit which is Rs 25,000 rather than paying tax on the total amount.

India’s crypto community, which had been waiting years for clarity on how the government plans to tax these assets,  In her budget speech on Feb. 1, Finance Minister Nirmala Sitharaman announced that India will tax all “virtual digital assets” at 30% – with no deductions or exemptions – from April 1

But the real killer blow, especially for traders, is the 1% TDS (tax deductible at source) that will apply to every single transaction involving crypto.

Until now, standard income tax rules have been applied, under which gains on crypto transactions fall either under ‘business income’ or ‘capital gains’, depending on the nature of the transactions and the length of time across which they took place. But from April 1, India will treat income from crypto as it does lottery winnings, which are taxed at 31.2%.

OnlineTaxSpecialist

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