<p>Giving clarity on taxation of cryptocurrencies and other virtual assets, Finance Minister Nirmala Sitharaman on Tuesday proposed a 30 per cent tax on income from transactions in such assets.</p>.<p>Also, to bring such assets under the tax net, she proposed a 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold.</p>.<p>Gifts in crypto and digital assets will also be taxed, she said.</p>.<p>The tax proposals will come into effect from April 1 after the passage of the Union Budget in Parliament.</p>.<p>Meeting demands from large sections of industry, she said the RBI will launch a 'Digital Rupee' based on blockchain technology in 2022-23.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/union-budget/key-takeaways-from-fm-nirmala-sitharamans-union-budget-speech-1076819.html" target="_blank">Key takeaways from FM Nirmala Sitharaman's Union Budget speech</a></strong></p>.<p>Experts said the 30 per cent tax levied on income arising from the sale of cryptocurrency is similar to the tax rate on winnings from lottery, game shows, puzzles etc.</p>.<p>Digital currency and assets like NFTs (non-fungible tokens) have gained traction globally over the last couple of years. Trading in these assets has increased manifold with cryptocurrency exchanges being launched. However, India did not have a clear policy on either regulating or taxing such asset classes.</p>.<p>NFTs are unique digital assets with verified ownership rights and the details are stored on a blockchain.</p>.<p>Nangia Andersen India Chairman Rakesh Nangia said the government has walked the talk on a stable and predictable tax regime and transfer of virtual digital assets have been brought under the taxation ambit.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>Giving clarity on taxation of cryptocurrencies and other virtual assets, Finance Minister Nirmala Sitharaman on Tuesday proposed a 30 per cent tax on income from transactions in such assets.</p>.<p>Also, to bring such assets under the tax net, she proposed a 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold.</p>.<p>Gifts in crypto and digital assets will also be taxed, she said.</p>.<p>The tax proposals will come into effect from April 1 after the passage of the Union Budget in Parliament.</p>.<p>Meeting demands from large sections of industry, she said the RBI will launch a 'Digital Rupee' based on blockchain technology in 2022-23.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/union-budget/key-takeaways-from-fm-nirmala-sitharamans-union-budget-speech-1076819.html" target="_blank">Key takeaways from FM Nirmala Sitharaman's Union Budget speech</a></strong></p>.<p>Experts said the 30 per cent tax levied on income arising from the sale of cryptocurrency is similar to the tax rate on winnings from lottery, game shows, puzzles etc.</p>.<p>Digital currency and assets like NFTs (non-fungible tokens) have gained traction globally over the last couple of years. Trading in these assets has increased manifold with cryptocurrency exchanges being launched. However, India did not have a clear policy on either regulating or taxing such asset classes.</p>.<p>NFTs are unique digital assets with verified ownership rights and the details are stored on a blockchain.</p>.<p>Nangia Andersen India Chairman Rakesh Nangia said the government has walked the talk on a stable and predictable tax regime and transfer of virtual digital assets have been brought under the taxation ambit.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>