Shubham
Quick Summary
The Union budget 2022 brought much-needed clarity on the taxation of cryptocurrency and NFTs. This was a requirement as the current regime did not offer any specific provisions for income arising from the sale and purchase of cryptocurrency and NFTs. This led to ambiguity as to how this income shoul
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FAQ :
A Virtual Digital Asset includes any information or code generated cryptographically, providing a digital representation of value. This covers cryptocurrencies, non-fungible tokens (NFTs), and any other digital asset that the Central Government may specify.
Income from the transfer of Virtual Digital Assets is taxed at a flat rate of 30%, without any slab benefits or surcharges. This rate applies regardless of the assessee's other income.
No, losses incurred from the transfer of Virtual Digital Assets cannot be set off against any other income. Furthermore, these losses cannot be carried forward to future assessment years.
A 1% TDS is deductible on payments made for the transfer of a Virtual Digital Asset. For individuals and HUFs with specific turnover limits, the TDS threshold is Rs 50,000, while for others, it is Rs 10,000.
Yes, any gift of a Virtual Digital Asset is taxable in the hands of the recipient, subject to the provisions of Section 56(2)(x) of the Income Tax Act.
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