There were all sorts of speculation regarding what will happen to the investment or income from cryptocurrency in India. Well, budget 2022 has given answers to most of the queries people had in their minds. The government of India has taken a strong approach against income from digital virtual assets or crypto by announcing a flat 30% tax on income from digital virtual assets or crypto.
Budget 2022 further tightens the screws on the crypto investors with its different provisions. Apart from 30% tax on income from digital currency, Finance Minister said “that no deduction in respect of any expenditure or allowance shall be allowed while computing such income except the cost of acquisition. The loss from the transfer of virtual digital assets cannot be set off against any other income.”
Investors who use to hide their gains or losses will now need to report them to the Income Tax department. The higher rate of income tax is surely a discouraging sign for a crypto investor. The non-allowance of deductions apart from the cost of acquisition will discourage people from investing in cryptos in India.
The budget of 2022 ultimately makes equities a more reliable market than other forms of assets. Intraday Trading Strategies and investing in the stock market is much safer than dealing in digital currencies. With the right knowledge about the technical and fundamentals of the companies, you can become a successful investor in India.
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