Cryptocurrency tax to come in effect from April 1 – Everything you need to know

Starting April 1, 2022, all forms of virtual digital assets (VDA) – Cryptocurrency or NFTs sold for profit will be taxed at 30 per cent. The announcement came earlier this year when Finance Minister Nirmala Sitharaman gave the Union Budget speech.

Here are some things that you might want to know if you deal in virtual digital assets:

– The cryptocurrency will only be taxed if the owner has made a profit on it by selling it and not your entire investment of cryptocurrency.

– However, all the cryptocurrency transactions will be charged at 1 per cent tax deducted at source (TDS).

– TDS will be deducted on the entire crypto transaction if one suffers any kind of loss.

– Tax will also be charged on international transactions. If one fails to inform the government then it can be considered illegal.

– Currently, the government of India does not have a cryptocurrency law in place. The country is yet to get crypto legislation.