Union Budget 2022: Govt Introduces Crypto Tax Of 30 Per Cent, Surcharge On LTCG Reduced And Capped At 15 Per Cent Now

Union Finance Minister Nirmala Sitharaman on Tuesday (1 February) presented the Union Budget 2022-23 in the Parliament.

In the budget speech, the Finance Minister introduced 30 per cent taxation on income gained by transfer virtual digital assets (VDAs).

She clarified that there will be no deduction made on any sort of expenditure from this and loss incurred through VDAs cannot be set off.

A 1 per cent tax deducted on source (TDS) will be levied above a threshold amount and gifts made of VDAs, or cryptocurrencies as they are referred to, will be taxed as well.

The Finance Minister even declared that surcharge on long term capital gains (LTCG) on any asset will be capped at 15 per cent now, down from 20 per cent as before.