Union Budget 2022 for Cryptocurrency: 30% Tax on transfer of Cryptocurrency Assets Announced, Full Explained

Manvendra Chaudhary

February 1, 2022

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Union Budget 2022 for Cryptocurrency: “In a major announcement Union Budget 2022 proposed that the transfer of any virtual or cryptocurrency asset will be taxed at 30 per cent. This move is likely to impact the burgeoning cryptocurrency industry in India. Finance minister Nirmala Sitharaman said in her speech that no deduction except cost of acquisition will be allowed and no loss in transaction will be allowed to be carried forward. This is a big news to the industry which has been asking for clarity on taxation norms around cryptocurrencies.“

The Finance Minister Nirmala Sitharaman of India has announced a new tax framework for cryptocurrency investors. The Union Budget 2022 provided much-needed clarity on how digital currencies will be taxed in the country and it’s one of those things where people were just waiting with bated breath, because as you know there are over 10 crore Indian citizens who own some form or another level up their game when dealing within cryptocurrencies so this is definitely big news!

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Taxation of digital currencies has been a heated topic in recent times. It seems that, for the time being at least, they will be treated like “speculative income” and taxed 30% on their gross amounts.” – says Shardul Amarchand Mangaldas & Co. partner, Amit Singhania on Union Budget 2022 for Cryptocurrency.

Nischal Shetty, leading Indian cryptocurrency exchange founder and CEO said –

“The tax clarity is a welcome move. Overall, it’s a huge relief to see that our government is adopting the progressive stance of going ahead in the direction of innovation. By bringing in taxation, the government legitimises the industry to a large extent. The majority of people, especially corporates, who have been sitting on the sidelines because of uncertainties will now be able to participate in crypto. Overall, it’s a positive move for the industry.”