After years of debate, a temporary ban by the Central Bank, a Supreme Court ruling and rumors of a ban by the Parliament, India has finally moved to officially classify cryptos as digital assets.
The new Finance Bill 2022 includes a new scheme for the taxation of crypto at a discriminatory rate of 30% regardless of whether it’s capital gains or income.
“No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Further, loss from transfer of digital asset cannot be set off against any other income,” said India’s Finance Minister Nirmala Sitharaman.
Losses in crypto can of course still be set off gains in crypto, but not against other sources of income.
Stocks are to be taxed at 15% in India, while ordinary income of circa $1,300 a month or more is also taxed at just 15%.