CURRENT AFFAIRS

Detailed explanation-1: -a) Income from the transfer of virtual digital assets such as crypto and NFTs will be taxed at 30% at the end of each financial year. b) No deduction, except the cost of acquisition, will be allowed while reporting income from the transfer of digital assets.

Detailed explanation-2: -As a result, there is now a tax of 30% plus surcharge and cess on the transfer of any VDA such as Bitcoin or Ethereum under the Income Tax Act, 1961. However, the legal position of cryptocurrencies is that they are illegal in their form & trade in India..

Detailed explanation-3: -A tax of 30% is levied on any income from the transfer of crypto assets. The new tax provisions are set to come into effect from April 01, 2022.

Detailed explanation-4: -30% tax rate will be levied on any profits made from the transfer of virtual assets. The 30% crypto tax rate will be the same irrespective of the nature of income i.e. it does not matter if it is an investment income or business income and is irrespective of the holding period.

Detailed explanation-5: -In Union Budget 2022, the Finance Minister announced the cryptocurrency tax in India at a flat rate of 30 percent on any income from the transfer of VDAs. Additionally, another section 194S dedicated to the treatment of Tax Deducted at Source (TDS) in the event of a transfer of a VDA was also announced.