In parliament, India’s finance minister revealed how the government intends to tax bitcoin transactions. Gains from crypto transactions will be taxed at 30%, while losses will not be deducted, according to a proposed new part of the Income Tax Act.
Indian Government Reveals Taxation Plan
The Financial Bill 2022 proposes to amend section 115BBH to the Income Tax Act 1961 to provide for the taxation of income from transfers of virtual digital assets, according to Minister Pankaj Chaudhary, the minister of state for finance (VDAs). He explained:
As per the proposed section, any income from transfer of VDA shall be taxed at the rate of 30%.