The proposed 30 per cent taxation on income from cryptocurrencies and other virtual assets will come into effect from April 1, Central Board of Direct Taxes chairman JB Mohapatra told news agency ANI on Thursday.
In addition, the 1 per cent tax deducted at source (TDS) on transactions in such asset classes will be applicable from July 1. Mohapatra said.
India became one of the few countries to impose tax on digital assets like cryptocurrencies and non-fungible tokens (NFTS) when finance minister Nirmala Sitharaman proposed a 30 per cent tax on transfer of such assets in the Union Budget 2022. Sitharaman had also proposed TDS on such transactions to bring these assets under the tax net.
Digital currency and assets like NFTS (non- fungible tokens) have gained traction globally over the last couple of years.
Trading in these assets has increased manifold with cryptocurrency exchanges being launched. However, India did not have a clear policy on either regulating or taxing such asset classes until now.
