Sitharaman proposes 30% tax on income from virtual digital asset transactions
New Delhi, February 1, 2022
Finance Minister Nirmala Sitharaman today proposed a 30 per cent tax on any income from transfer of any virtual digial assets.
Presenting the Union Budget 2022-23 in the Lok Sabha, Sitharaman pointed out that the magnitude and frequency of transactions in virtual digital assets had increased phenomenally.
She said that the scheme would not allow any deduction in respect of any expenditure or allowance while computing such income except cost of acquisition.
Further, she said, loss from transfer of virtual digital asset cannot be set off against any other income.
The Finance Minister said that, in order to capture the transaction details, the Government would also make a provision to provide for TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.
Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient, she said.