NEW DELHI: Several income tax proposals, including 30 per cent tax on income from trade in cryptocurrencies will come into effect from today. From April 1, 2022, income from transfer of virtual digital assets or cryptocurrencies is taxable at 30 per cent. Such income will be taxable even if taxpayers' total income is below the threshold limit of Rs 2.50 lakh. Further, unlike in other asset classes like equities, retail investors will not be able to set off losses incurred against crypto coins, claim expenses or acquisition costs, or benefit from a reduced slab for long-term capital gains under the new tax regime.
The proposed 1% TDS on crypto transfers will kick in from July 1, 2022 and talks of imposition of GST on the entire value of crypto transactions are further expected to impact trading volumes.
