Why tax on cryptocurrency is so high?

  1. Income (Any gains or losses made from a crypto asset held less than 12 months / Financial year) from any transfer of crypto, even gifts, would attract a 30% tax
  2. Investors will also have to face additional 1% TDS (Tax Deducted at Source) on digital asset transfers above a certain threshold, which will allow it to capture transaction data with the government.
  3. In addition, investors cannot get any deductions and won’t be allowed to set off losses from transfer of such assets against any other income.
  4. As a disclosure requirements the taxpayers will have to report income from crypto through a separate column while filing I-T returns.
  5. RBI-backed ‘digital rupee’ to be launched in FY23.
  • Lets, take an example to understand the tax system on crypto trading.

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Ankit Gupta

Ankit Gupta

Data Science Enthusiast | Top 50 finalist from Jharkhand at Startup India Innovation Challenge 2018 | Digital Content Creator | Photography | Traveller