Indian Government has decided to tax income from transfer of digital assets at 30% of the income. This means effectively income from sale of bitcoin and other cryptocurrencies would be taxed at 30%. This indicates India Government has treated CryptoCurrency as an digital assetclass rather than as a legal tender as it has taxed income that occurs from transfer of cryptocurrencies.
These are the announcements from Budget presented by Finance Minister
- No deduction allowed while computing income except cost of acquisition.
- Loss cannot be set off from any other income.
- TDS of 1% on payment made for transfer, above a monetary threshold