When it comes to cryptocurrency classification and taxation, the Indian crypto community has long been in the dark. But this changed when Finance Minister Nirmala Sitharaman announced in a 2022-23 budget speech that he would impose a 30% tax on all “virtual digital assets”, including non-fungible tokens (NFTs). rice field. She also announced a 1% tax deducted at Source (TDS) on the purchase of cryptocurrencies.
The new tax law means that crypto assets are legal in India, but there are still pending regulatory bills that could change things when they are introduced. The bill, entitled “Official Digital Currency Bill Cryptocurrencies and Regulations, 2021”, will be introduced “to ban all private cryptocurrencies in India,” according to Lok Sabha’s website.
This may sound worrisome, but the bill is still underway and the newly introduced tax law provides a positive outlook for digital assets from the government.