Tax on Cryptocurrency- Know The India Govt's Tax Rules on Crypto in Future

Tax on Cryptocurrency- Know The India Govt's Tax Rules on Crypto in Future

The government has now become more strict regarding Tax on Cryptocurrency. For this Govt has proposed some amendments in the Finance Bill-2022. As we can see the government does not seem to be in a mood to give any relief on Crypto in the future. Many changes will be seen in Crypto from the first day of the new financial year 1 April. A major change is a tax on cryptocurrency in India. This was announced by the Finance Minister in the recent budget. It said that all virtual digital assets (VDA) or crypto assets will be taxed at 30 percent if there is a profit on selling them. Apart from this, whenever a crypto asset is sold, then 1% TDS will be deducted from its sale. This TDS (TDS on cryptocurrency) can be set off with crypto tax at the end of the year. How will tax and TDS be deducted, how much money you will have to pay for this, Here in this post we will talk all about the tax on crypto and also the Indian government’s tax rules on cryptocurrency?

The government has clarified one more thing tax and TDS should not be taken to mean that transactions of cryptocurrencies have got legal status. From April 1, if you earn from any cryptocurrency like bitcoin or Ethereum, then 30 percent tax will have to be paid on it.

See also  Vietnam will Soon Have a Law for Cryptocurrencies

There are about 10 million cryptocurrency users in India who have traded around $100 billion in 2021. Crypto trading continues in India indiscriminately even today and after the introduction of tax provision, further speed can be seen in it. People have also been convinced that the government will not impose any restrictions on crypto in the future.

How To Deduct Tax On Cryptocurrency In India

Whatever cryptocurrency you save and the profit you get from it, you will have to pay 30 percent tax to the government. For example, suppose a person bought crypto for Rs 5,000 and sold it for Rs 7,000. Due to this he made a profit of Rs. 2,000. A tax of 30% will have to be paid on this Rs 2,000, which will be Rs 600. But as long as you do not sell that crypto and make any profit on it, there will be no need to pay any tax. A person buys and sells crypto many times throughout the year, but if you make a loss instead of profit, you will not be required to pay any tax to the government, which is a matter of benefit for the crypto investor.

What Can Be The Rule of TDS On Crypto

The government has now made a new rule for TDS on crypto as well. 1% TDS can be deducted on transactions of cryptocurrencies. This TDS will already be deducted by the crypto exchanges. Its rule is that 1% TDS will be deducted if you make a loss or profit on selling or buying crypto. Suppose you have bought bitcoin for Rs 20,000 and are selling it for only Rs 20,000. After deducting TDS on the same 1% crypto, you will get only Rs 19,800.

Leave a Reply

Your email address will not be published. Required fields are marked *