30% Tax on
Effective from April 1st
The 30% 'crypto tax' proposed in the Union Budget by Finance Minister Nirmala Sitharaman comes into effect today (April 1st, 2022).
The Income Tax Department will be keeping a close eye on every transaction on crypto exchanges. IT sleuths will also track the crypto transaction through reporting entities.
The India Finance Bill 2022 which levies a 30% tax on crypto assets was approved by the Rajya Sabha, one of the leading governing bodies of India.
Along with the 30% tax, the Indian government has also imposed a 1% TDS or tax deduction at source on each trade.
Moreover, the losses will not be allowed to set off against income under "any other provision" of the IT Act.
The bill which was first introduced in January 2022, has reportedly undergone 39 changes before it was finally approved by the Indian parliament.