Indian Virtual Property Tax Taxation on virtual digital property transactions has started from April 1, 2022 . The budget provides for a 30...
Indian Virtual Property Tax
Taxation on virtual digital property transactions has started from April 1, 2022.
The budget provides for a 30 per cent capital gains tax on virtual property transactions.
Similarly, 1 per cent withholding tax (TDS - Tax Deducted at Source) has been provided for virtual currencies above Rs 10,000 per annum.
In addition, as per the provisions of Proposed 15 BBH of the Income Tax Act, 1961, capital loss due to transfer of virtual assets cannot be presented as 'offset' against capital gains incurred due to transactions in any other virtual property.
E.g. If an investor makes a profit of Rs 1,000 on a virtual digital asset transaction of 'Token A', he will have to pay 30 per cent tax on it. At the same time, even if a loss of Rs 400 is incurred in another transaction involving Token B, the investor will still have to pay tax at the rate of 30 per cent on a profit of Rs 1,000. After deducting this loss of Rs.400 in shares, bonds and other assets, the remaining net capital gain of only Rs.600 is taxable.
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