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India announced plans to introduce a digital currency next year and tax cryptocurrencies and NFTs on 1st February 2022, as the world's second-biggest internet market draws closer to recognizing cryptocurrencies as legal cash. The crypto community in India has applauded the news in Budget 2022 of a flat 30% tax on revenue from the transfer of virtual digital assets (VDAs), such as cryptocurrencies and non-fungible tokens (NFTs). Despite the high VDA tax rate, they are pleased that cryptocurrency has earned some respect by being mentioned in an official Budget document for taxes purposes. Finance Minister Nirmala Sitharaman has stressed, however, that imposing a tax on revenue from VDAs, including cryptocurrency, does not imply that they have been proclaimed lawful. While the imminent bill to govern virtual digital assets will provide considerable clarification on the legality of Crypto, a number of crypto investors are unsure how to calculate their tax burden.
Guidelines issued after extensive consultation with all stakeholders, including the government ~ Applicable to all virtual digital asset-related ads released on or after 1st April, 2022
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