“The new regime of flat 30% taxation on income from crypto assets from April 1, 2022, will ebb the sentiments for the new age asset class. Though, we hope that the crypto investors will back their investment thesis and stay in with the investment for longer periods," said Kunal Jagdale, Founder, BitsAir Exchange.
How cryptocurrency assets will be taxed from April 1 explained in 10 points
1) Tax @ 30% on Digital Assets: The gain on the sale of cryptocurrency would be taxed at a 30% tax rate. This taxation would certainly impact post-tax returns of cryptocurrency transactions. “Only deduction from sale consideration can be the ‘cost of acquisition of cryptocurrency’. There won’t be any other expenses allowed to be deducted. Due to no set-off of loss from other sources of income, it will become very challenging to have a net profitable trade in cryptocurrency," said Sujit Bangar, Founder, Taxbuddy.com
2) If you have purchased crypto for ₹15k and sold it for ₹45k, your straightforward gain is ₹30k.
It would be taxed as under :
Sale consideration ₹45k
Less cost of acquisition ₹15k