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If you have invested in Cryptocurrency or NFT, then sell it today, if you miss, you will have to pay a heavy tax.

30 Percent Tax On Crypto Assets From 1 April: According to the announcement made by Union Finance Minister Nirmala Sitharaman during the Budget 2022, from April 1, income from cryptocurrencies or NFTs or other crypto assets will have to be taxed up to 30 percent. Along with this, one percent TDS will also be deducted on this transaction. 

With the beginning of the new month, many new changes are also seen. Many rules are changed and many new rules are implemented. As it is known that the new financial year is going to start from tomorrow i.e. from 1st April. So if you are a crypto investor then you need to be careful. Because with the new financial year, the tax burden on you is also going to increase. 

According to the announcement made by Union Finance Minister Nirmala Sitharaman during the Budget 2022, from April 1, income from cryptocurrencies or NFTs or other crypto assets will have to be taxed up to 30 percent Along with this, one percent TDS will also be deducted on this transaction. So if you have bought any cryptocurrency then sell it today. Because if an investor sells crypto by March 31, then the profit made in this financial year will be added to his income and tax will be deducted accordingly in the tax slab the person falls in. At the same time, from April 1, returns on crypto will be taxed at the rate of 30 percent, irrespective of the tax slab you fall in.

Significantly, the government has also made it clear that the tax on cryptocurrencies cannot be set-off with business expenses. Its TDS can be set-off only with crypto tax. If you have a loss in crypto, after April 1, you will not be able to adjust your loss against profits from other assets. This rule will be very harmful for those investors who will sell crypto assets at a loss after April 1. 

That much of the income from crypto will be deducted 
Let us tell you that the Finance Minister did not use the word cryptocurrency anywhere in his entire budget speech, but he was pointing in this direction with the announcement on virtual currency and digital asset. The Finance Minister announced the imposition of 30 percent tax on income from virtual currency or digital assets. Understand it in such a way that suppose you invested 1 lakh rupees in cryptocurrency, after this investment you got a profit of 50 thousand rupees, then the government will deduct 30 percent tax on the profit of this 50 thousand rupees in the form of tax, that is, you got from crypto. Out of this earning, Rs 15000 will go to the government’s account. The decision to impose 30 percent tax on crypto income is a bit surprising, but crypto investors of India are considering it as a positive step of the government. This move will eventually make investors think twice while deciding where to invest their money in this risky crypto market.

Apart from this, the Finance Minister has announced in his budget speech to impose a hefty 30 percent tax
in the case of gifting any such property. It can be understood in this way that if you give a cryptocurrency gift of Rs 1 lakh to someone, then to whom you are giving this precious gift i.e. 30 percent tax will be applicable on the recipient. If you gift a cryptocurrency worth Rs 1 lakh, then he will have to pay 30 percent of it or Rs 30,000 as tax to the government. 

Calculation of 1% TDS
TDS i.e. Tax Deducted at Source is actually a part of income tax. Talking about the announcement of the government, you will have to pay TDS of 1 percent on the transaction of any kind of cryptocurrency. If you understand in simple language, if you have done a transaction of cryptocurrency of Rs 1 lakh, then 1 percent TDS will be deducted from the amount of this transaction when it comes to your account. By deducting TDS, the government will get a complete account of the cryptocurrency transactions done from your account. Meaning in a way, TDS is actually levied to keep an eye on the transactions of cryptocurrencies.