Are You ready for Crypto Tax from 1st April 2022: क्रिप्टोक्यूरेंसी टैक्स

Crypto Tax | क्रिप्टोक्यूरेंसी टैक्स | Cryptocurrency Tax is 30% | 1% TDS

 From 1^st April (Fiscal year 2023), the gains on Cryptocurrency will be taxed at 30%. This is the highest tax bracket. This tax will be levied to all Virtual Digital Assets (VDA). VDAs are ranging from Cryptocurrencies, NFTs and other related earnings.

From April 1, 2022 you will have to pay the crypto tax which is 30%. This tax will be applied to all forms of Virtual Digital Assets (VDAs)/ Crypto assets which are sold at profit.

Except this 30% tax, 1% TDS (Tax Deducted on source) will be levied back each time your sell a crypto asset and will be levied against the crypto tax at the end of the fiscal year.

India’s Finance Minister told that the existence of a targeted tax does not give cryptocurrency a ‘Legal Status’.

From 1^st April (Fiscal year 2023), the gains on Cryptocurrency will be taxed at 30%. This is the highest tax bracket. This tax will be levied to all Virtual Digital Assets (VDA). VDAs are ranging from Cryptocurrencies, NFTs and other related earnings.

Cryptocurrency investors will need to aware of all aspects. It would be beneficial to remain on the right path of the law in the financial year 2023 (1^st april 2022-31^st March 2023)

India is expected to have more than 10 Million Crypto users. This can be presumed by the trading volume figures which are about $100 billion in 2021.

Cryptocurrency Tax

All Crypto an VDA users will be taxed at 30% rate.

For example-

If a person buys a Crypto asset at 20,000 and sells at 24,000 then the profit becomes 4,000.

30% Tax will be levied from 1at April 2022, Hence 30% of 4,000 is 1,200

So 1,200 extra about as a tax will be levied from you from this fiscal year.

 

1% TDS on Crypto

The government of India has also decided to levy 1% TDS on all crypto transactions. This will be deducted by the crypto exchanges on behalf of Government of India. This 1% TDS will be levied it doesn’t matter you make loss or profit.

For Example-

If you buy Cyrpto at 80,000 and sells at the same price without making any profit or loss then you will be levied 1% TDS i.e. 800 will be deducted out of 80,000/.

This Tax Deducted at source will be set against the overall income tax retained by the crypto owned at the end of every financial year.