What happened: On February 1, India announced plans to launch a digital currency subsequently a taxation policy on cryptocurrencies as the country aims to recognize the incomes generated from NFTs and digital currencies. TechCrunch quotes the development as, “Income from the transfer of any virtual assets will be taxed at 30%.” At the same time, the finance minister, Nirmala Sitharaman, proposed a 1% tax on the deduction at source on payments regarding virtual assets.
Details: TechCrunch quotes the finance minister as, “No deduction in respect of any expenditure or allowance shall be allowed while computing such income except the cost of acquisition.” It is pertinent to mention that NFTs and cryptocurrencies are gaining recognization in India, despite the regulations.
More: Subsequently, the Union Budget 2022-2023 was presented in the assembling proposing the taxation. LatestLy quotes, “With the taxation of digital assets, the loss cannot be set-off against any other gain, gain from transfer of the virtual digital asset is non-deductible and the gift of the virtual asset will be taxable as well.”