Explained: New tax rules on cryptocurrency investments

economictimes.indiatimes.com:

Here are the new tax rules on cryptocurrency: * Sitharaman announced that gains arising from the sale of virtual assets would be taxed at a flat rate of 30 per cent without any deduction or exemption.

Did you Know?

Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs

* The loss arising from the sale of any virtual assets cannot be set off against any other income. * TDS at the rate of 1 per cent would be levied on payments made on transfer of digital assets. * Gifting of crypto tokens and virtual assets would be taxed at the hands of the recipient at the same rate. * The new rules include private cryptocurrencies, DeFi (decentralised finance) and non fungible tokens (NFTs). Prima facie, this excludes digital gold, central bank digital currency (CBDC) or any other traditional digital assets. «This will obviously result in a slowdown in a sector that was growing rather rapidly. Those who trade in crypto and NFTs will be worried,» said Pritha Jha, Partner at Pioneer Legal.