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Crypto industry to move Centre, seeking revision of 30% levy on transactions

Feb 08, 2022 04:03 PM IST

In addition to specifying a 30 percent tax rate, the Budget also mandated an additional 1 percent TDS to be levied on crypto transactions that exceed a certain limit, with the intention of establishing a record trail

Representative image.

Days after the 2022 Union Budget proposed a 30 percent tax on the sale or purchase of virtual digital assets like cryptocurrencies, the Indian crypto industry plans to seek a revision of the rate from the government.

Drafting a memorandum to that effect, the proposal, which will be headed by the Blockchain and Crypto Assets Council (BACC), will take into consideration the various implications of the new tax rules and their impact on the domestic crypto ecosystem and the economy at large.

The Budget also mandated an additional 1 percent TDS to be levied on crypto transactions exceeding a certain limit with the intention of establishing a record trail.

While such a virtual digital gift would be made taxable at the hands of the recipient, any losses incurred during the course of the transaction would not be eligible for a write-off against any other source of income. Except for deductions involving the cost of acquisitions, nothing else would be allowed.