The Finance Minister, Nirmala Sitharaman announced that the Virtual digital assets will be taxed at 30% and 1 % TDS on transfer of virtual digital assets.
This move is significant to bring cryptocurrencies and non-fungible tokens (NFTs) under a tax net.
“Any income from virtual digital assets is taxable at 30 per cent,” the finance minister said while presenting the federal budget. “There will be no deduction with the exception of the cost of acquisition. The TDS is applicable beyond a specified monetary threshold, and the gift of virtual currencies is taxable in the hands of the recipient,” she added.
“Introduction of a central bank digital currency will give a big boost to the digital economy,” Nirmala Sitharaman said.
Digital currency will also lead to a more efficient and cheaper currency management system, she added.
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