India will start Taxing cryptocurrency starting April 2022
If you are an investor in cryptocurrency in India, you need to start paying taxes on your cryptocurrency investment.
Starting from 1st April 2022, a flat 30% tax will be applicable to all digital or virtual assets sold at a profit.
On top of 30% tax on profits, users also need to pay 1% tax deduction at source on payments made related to the buy/sell of virtual assets.
The 1% detection will be set off at the end of the financial year. But the crypto tax cannot be set off against other business expenses.
If you made a loss in Bitcoin, you could not set it off with profit in Ethereum. Users will not be able to offset the loss on one crypto with profit from another.
This would apply to all digital assets, including cryptocurrencies, NFTs, DeFi and related earnings.
Flat 30% tax is the highest tax bracket, and it has the same rate as lottery winnings.
To get more info related to Crypto, NFTs, DeFi visit Cryptogurukul.com