Income Tax Calculator: From 1st April 2022, many income tax rules announced in Budget 2022 will be implemented across the country. The new income tax law on cryptocurrencies and other digital assets is one of them. As per the Union Budget 2022, gains on digital assets including cryptocurrencies like bitcoin will be taxed at 30 per cent, while there will be 1 per cent TDS and gift tax to be paid by the recipient of the digital asset as a gift under certain conditions.
to speak on cryptocurrency tax in india coming into force in the new financial year; Balwant Jain, a Mumbai-based tax and investment expert said, “From April 1, 2022, all digital asset investors will have to pay a flat 30 per cent tax on their income on digital assets. In addition, 1 per cent TDS will be levied by the buyer of the digital asset. Deduction. 1 per cent TDS will have to be deducted on the purchase price of the transaction. However, this TDS rule will be applicable from July 1, 2022. Further, with effect from April 1, 2022, the definition of asset has been changed to include digital assets. Non-specified Any gift, including digital assets received from a relative, will be treated as income if the aggregate value of all gifts exceeds 50,000 in a single financial year.”
Balwant Jain said that from the next financial year, taxpayers are advised to also include the gift amount of digital assets while computing the net gift amount accepted by non-specified relatives.
In line with the views of Balwant Jain; Sujit Bangar, Founder, Taxbuddy.com said, “Profit on sale of cryptocurrency will be taxed at 30 per cent tax rate. Only the ‘cost of acquisition of cryptocurrency’ can be deducted from the sale consideration. There will be no other expenses.” Deductions are allowed. With no set-off of losses from other sources of income, it will become very challenging to conduct a net profitable trading in cryptocurrency. This taxation will certainly affect the post-tax return of cryptocurrency transactions.”
Sujit Bangar of TaxBuddy.com, on how TDS will be levied on digital assets like cryptocurrencies, bitcoins etc. said, “TDS at the rate of 1 per cent has been proposed for transactions involving cryptocurrency. It is worth noting that That is, we can sell cryptocurrency at profit or loss but TDS at the rate of 1 percent will definitely happen. We can claim refund of TDS done on the transaction involving loss. So, if you have entered into the transaction then It would be recommended to file income tax returns in cryptocurrency.”
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