Cryptocurrency Tax: No set off against loss on investment in crypto

Cryptocurrency Tax: Union Finance Minister Nirmala Sitharaman made a big announcement in her budget speech on Tuesday, imposing a 30% tax on cryptocurrency income, which has been a hot topic of discussion for a long time. In addition, it has been decided to deduct 1% TDS on cryptocurrency transactions. In addition, the Finance Minister stated that there is no set-off for losses on crypto investments, i.e., losses resulting from the transfer of a private digital asset or cryptocurrency cannot be offset against any other income.

That much of the cryptocurrency profit will be taken away.

Although the Finance Minister did not use the term cryptocurrency once in his entire budget speech, his announcement on virtual currency and digital assets is being viewed as a step in that direction. The Finance Minister announced that income from virtual currency or digital assets will be subject to a 30% tax. To put it another way, if you invested 1 lakh rupees in cryptocurrency and made a profit of 50,000 rupees, the government will deduct 30% tax on the profit of 50,000 rupees in the form of tax, which you earned from crypto. Rs 15000 will be transferred to the government’s account from this profit. Although the government’s decision to impose a 30% tax on crypto income is surprising, crypto investors in India see it as a positive step. This move will make investors think twice about where they put their money in the risky cryptocurrency market.

A tax will be levied on the person who accepts the gift.

Aside from that, the Finance Minister announced in his budget speech that gifting of AC property will be subject to a steep 30 percent tax. It can be understood in this way: if you give someone a cryptocurrency gift of Rs 1 lakh, the person to whom you are giving this valuable gift, i.e. the recipient, will be subject to a 30% tax. If you give him a cryptocurrency worth Rs 1 lakh, he will have to pay the government 30% of the value, or Rs 30,000, as tax.

1 percent TDS calculation

Tax Deducted at Source, or TDS, is a type of income tax. According to the government’s announcement, you will be required to pay a TDS of 1% on any cryptocurrency transaction. To put it another way, if you make a cryptocurrency transaction worth Rs 1 lakh, 1 percent TDS will be deducted from the amount when it reaches your account. The government will receive a complete account of all cryptocurrency transactions made from your account after TDS is deducted. In some ways, TDS is imposed in order to keep track of cryptocurrency transactions.

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