During the Union Budget 2022 speech, Finance Minister Nirmala Sitharaman acknowledged crypto assets through a tax, announcing that income from the transfer of any virtual digital asset (VDA) — including all types of cryptocurrencies and NFTs — will be taxed at a flat rate of 30 percent.
Although India's blockchain and crypto industry is still awaiting a Crypto Bill defining these digital assets more clearly, leaders from the nation's top crypto exchanges reacted positively to the new digital assets tax regime and CBDC rollout plans.
However, there is a need to take a closer look at this crypto tax as the FM also announced that no deduction is possible for any expenditure or allowance while computing income from the transfer of digital assets, except the cost of acquisition of the VDA.
"Loss from transfer of virtual digital assets cannot be set off against any other income, and gifting virtual digital assets will be taxed in the hands of the recipient," she said in her speech.
The Decrypting Story breaks down what some of the top entries from the Finance Bill mean for the new crypto tax.
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News & Updates
- [YS Exclusive] The board of Resilient Innovations, which runs BharatPe, added a director on February 2, 2022 — six days ago. With the latest director's onboarding, BharatPe now has nine directors on its Board. John Weinstein, Principal, Deputy General Counsel at Insight Partners, is the new addition to the board of directors.
- Navi Technologies has converted itself into a public firm in what is seen as a move towards the company launching an initial public offering (IPO) soon. According to regulatory filings, the Sachin Bansal-led company has made this change through a special resolution.
- Bengaluru-based fintech startup Razorpay has acquired a majority stake in Kuala Lumpur, Malaysia-based Curlec, a fintech startup that enables B2B recurring payments, valuing it at $19-20 million.
- Fintech unicorn Pine Labs, which is planning to list on the US stock market, continues with its inorganic strategy with the acquisition of Qfix Infocomm, a Mumbai-based online payments startup, for an undisclosed value.
- Online travel aggregator (OTA) MakeMyTrip wants to grow its fintech enterprise, TripMoney, as an independent business. It will also launch a separate TripMoney app later this year to cross-sell and upsell products across consumer loans, bite-sized insurance, and forex cards.
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Corinne Vigreux
“If you ride technology, you can ride the future.”
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