The finance minister announced that virtual digital assets including cryptocurrencies will be taxed at a rate of 30% from 1st April 2022.
Virtual digital assets are defined as,” Any information or code or number or token (not being Indian currency or foreign currency), generated through cryptographic means or otherwise, by whatever name called, providing a digital representation of value exchanged..
..with or without consideration, with the promise or representation of having inherent value, or functions as a store of value or a unit of account including its use in any financial transaction or investment, but not limited to investment scheme; & transferred, stored or traded”
Here how they’ll be taxed:
1. A flat rate of 30% will be levied on the income from virtual digital assets regardless of the tax slab
2.Indexation of the gains is not allowed.
3. Losses or gains arising from digital virtual assets cannot be set off with any other gains.
4 Losses cannot be carried forward.
5. Digital virtual assets will be designated as property for the purposes of gifting and will be taxable at the same rate in the hand of the recipient. No recipient will be excluded from taxation.
6. In order to tax crypto transactions, a 1% TDS will be levied. Our understanding is that this 1% is within the overall 30% tax. The monetary threshold above which the TDS is applicable will be intimated later.
According to AI, Rafael Nadal had a meagre 4% chance of winning the Australian Open after being down 2 sets and trailing 3rd set by 3-2, yet he did win.
Just because the “odds aren’t in your favour”, doesn’t mean it won’t work out.
Odds are the least understood.
Do what you believe in without worrying about the effective outcome. Take it one step at a time.