Budget 2022 levied a flat 30% tax on gains from crypto investments and disallowed losses from crypto to be set off with any other gains. Further, TDS @ 1% has also been introduced w.e.f. 1 April 2022. So, does this mean that crypto has been officially legalized? Well, the answer is NO. Read this expert article to find out how the budget 2022 has affected your crypto investments and the Indian government's take on cryptocurrencies and other digital assets.
While presenting Budget 2022, Finance Minister Nirmala Sitharaman announced that a flat tax of 30% would be levied on gains from all digital assets, which includes cryptocurrencies and non-fungible tokens (NFTs). The manner in which the tax has been levied indicates that the intent of the government is to discourage investments in crypto.
However, many investors felt otherwise - that the move encourages crypto. Because of the new tax, they assumed that crypto investments are now officially legal in India, removing any ambiguity regarding the new-age investment choice. This led to a huge number of people rushing to open accounts with crypto exchanges.
However, this interpretation was flawed. Just because a tax has been levied does not mean that crypto is now officially legal in India....