Recently, during the budget, Finance Minister Nirmala Sitharaman announced that Virtual Digital Asset (VDA) like Cryptocurrencies and NFTs will be taxed at 30%.
Yesterday the Government of India (GOI) made some announcements giving further clarification on the tax on VDA.
The first announcement is that the loss on one digital asset cannot be offset with the gain on another digital asset.
For example, if you make a profit of Rs 1000 on Bitcoin and a loss of Rs 1000 on Ethereum, then you will not be able to set off your profit on Bitcoin with the loss of Ethereum. You will have to pay 30% tax on a profit of Rs 100 on Bitcoin.
The second announcement is that the electricity and computing power involved in crypto mining will not be counted in the cost of acquisition and hence no deduction will be given on them.
This article is only for education purpose and the author has his own views and research, so if you invest in these stocks/forex/Virtual Digital Asset then do it at your own risk and do the research yourself before investing.