Govt's tax rules in cryptos effective Apr 1; Should you sell your crypto assets before Mar 31?
On Friday, Lok Sabha approved taxation rules on virtual digital assets (VDAs) or crypto tax that was proposed in Budget 2022-23 by clearing the Finance Bill 2022. These new tax rules are set to become effective from April 01, 2022.
The Indian government has tightened bolts for trading in cryptocurrencies. Right from taxation on crypto gifts to prohibiting hedge of loss in cryptocurrency with gains of another digital asset. In simple words, a loss from Bitcoin assets cannot be set off from income in ApeCoin or any other virtual digital assets as a matter of fact. A tax of 30% is levied on any income from the transfer of crypto assets. The new tax provisions are set to come into effect from April 01, 2022. This has led to mixed opinions and overwhelming responses in the blockchain industry. While investors contemplate on whether to book profits or even losses in their cryptocurrency assets before March 31, 2022.
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