Union Budget 2022: FM proposes 1 pc TDS on payment made to transfer virtual digital assets

Feb 01, 2022

New Delhi, Feb 01 (ANI): Union Finance Minister Nirmala Sitharaman announced on February 01 that income from digital asset transfers will be taxed at a rate of 30 per cent. This move is seen as ‘crypto tax’. Presenting the Union Budget 2022-23 in the Lok Sabha, Sitharaman said gifts received in the form of cryptocurrencies will also be taxed at the same rate. Cryptocurrencies gifts will be taxed at the receiver's end. While presenting the Budget in the Parliament, she said, “I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition.” “I propose 1 per cent TDS on payment made in relation to transfer of virtual digital assets. Gift of virtual digital assets is also proposed to be taxed in the hands of the recipients.” She added.