The Indian government introduced the 30% tax on Virtual digital assets in section 115BBH.
The Finance minister of India Nirmala Sitharaman said that 30% of tax will be applicable on the income from the virtual digital assets (crypto) and there is no set off will be allowed for any losses.
Example for 30% tax on crypto
If you deposit 1000 Indian rupees and buy a thousand rupees crypto and get the profit of 300rs then you have to pay 90rs of tax to the Indian government.
Crypto 1% Tax deducted at source
The Indian government also introduced one percent of tax deducted at source (TDS) will be charged on the payment or transfer of virtual digital assets.
The gift of virtual digital assets has also been proposed to be taxed in the hands of the recipient this taxation will be applicable from 1st July 2022.
Indian Government will launch digital currency
The finance minister of India also states that The Government of India will also launch blockchain-based and RBI-backed (CBDC) by 2023.
Cryptocurrency legitimacy
The finance minister of India said that the government taxing income from virtual digital assets did not give them legitimacy and this issue will be handled separately
Crypto 30% Tax and 1% TDS
The 30% tax for the crypto will be effect from 1st April 2023 and 1% TDS will be applicable from 1st July 2022.