Finance Minister Nirmala Sitharaman in her Budget speech announcing the Union Budget 2022-2023 has announced that income from virtual digital assets will be taxed at the rate of 30 percent. 

“There has been a phenomenal increase in transaction in virtual digital assets. The magnitude and frequency of these transactions are made it imperative to provide for a specified tax regime accordingly, for the taxation of virtual digital assets, Sitharaman said. 

The Finance Minister has proposed that any income generated from the transfer of any virtual digital asset shall be taxed at the rate of 30 percent. “No deduction in respect of any expenditure or elements shall be allowed while computing such income except cost of acquisition for loss from transfer of virtual digital assets cannot be set off against any other income,” she added.

There will also be TDS (tax deducted at source) on the transfer of virtual digital assets. “I also propose to provide for TDS on payment made in relation to transfer virtual digital assets at rate of one percent of such considerations about a monetary threshold gift the virtual digital asset is also proposed to be taxed in the hands of the recipient,” Sitharaman added.

This is a breaking news story. Details will be added soon. Please refresh the page for latest version.