Taxation of Virtual Digital Assets (VDA)

VIndia has finally taken steps to adopt cryptocurrencies in the country. In her budget speech, Finance minister Nirmala Sitharaman stated that the government plans to tax 30% on the income gained from the transfer of virtual digital assets. Along with this, the Reserve bank of India plans to launch its own digital currency from the 1st of April 2022.

The Financial budget of 22-23 also mentions that a TDS of 1% will be charged on virtual currency payments of Rs 10,000 above in a year. The government has set a ceiling of Rs 50,000 a year for certain groups which shall include persons who get their accounts audited under the I-T Act. The provision for charging 1% TDS will be applicable from 1st of July 2022.