Clear your every doubt on crypto asset #TAX which is 30% on budget presented by Indian FM present 2022-2023 financial year.

Finance Minister present the Indian budget of the financial year of 2022-2023 and impose TAX on Crypto Assets. 

fig1 30% tax on crypto asset .

In budget 2022-2023 Finance minister mention crypto asset in their speech where government introduce 30% TAX and 1%  TDS will be charge on transfer of digital assets. Since this statement, a different environment has been created in the market, some consider this move of the government to be good and some are considering this move as a negative sign, today we will see the answer to whatever question is rising by the community.

1 Do we have to pay 30% tax on transaction?

Yes, if you withdraw any of your profit in your bank account then you will have to pay 30% on your profit.

2 Do we have to pay 30% tax on loss also?

No, if you put some amount in the market and you are in loss in it, then you will not have to pay any tax in that financial year.

3 What will be my tax module if I am a loss this year and a profit next year?

 Let's understand this answer with an example...

Suppose, you put one lakh rupees in digital assets in the financial year 2022-2023, you have made a loss of 40 thousand in this financial year and now you don't want to book the loss or don't want to withdrawal your money, and you want to carry forward remaining amount to the next year. So now in 2023–2024 you have total 60 thousand left which you carried forward from the financial year 2022-2023. Now an interesting thing on this is that, you will have to pay 30% tax in the profit you will make on the amount you are carried forward in the last financial year(2022-2023) to next financial year(2023-2024).

But here you must be thinking that if you have done loss this financial year and make profit in next financial year then my net profit should be zero and at that time you should not pay any tax on that.

On this topic, the expert says that if you have lost in 2022-2023 financial year, then it will be applicable only for 2022-2023 financial year. You cannot carry forward that loss to the next financial year, and the amount that you have left after the loss, which you carry forward in the next financial year, whatever your profit will be in it, you will have to pay 30% tax on that profit.

4-What is the tax slab for 30% and up to how much amount will be applicable?

 Till now there is no such guideline and low where any such limit has been defined but if you go on income tax low, then in that if your income is more than 2 lakh 50 thousand then you come under income tax bracket. A clear picture is yet to come from the government on this topic.

5-Do we have to pay tax if we give a gift to someone?

Yes, if you give a gift or airdrop of your friend or a unknown person, then it will come under the tax bracket. after receiver gift, whatever profit takes on that gift will also come under tax.

 But in income tax low if you give a gift in blood relation, then no tax will be applicable on it.

6-Will there be tax on mining also?

There is no such clarity, but according to experts the tax will impose on mining profit, according to that if you have your own mining setup where you invest your initial capital, whatever profit you get after coming to your ROI will be taxed at the rate of 30%.

7-Who will deduct our TDS and how?

Your TDS will be deducted through the exchange and this TDS will depend on your amount & number of transactions. 

8-How many times do we have to pay tax in a financial year?

Only one time that too at the end of the financial year, that too on your profit.

Last 3 to 4 years ago, everyone was talk of banning crypto, today the government has put an end to all this speculations by imposing tax on crypto assets. which means Government indirectly accepting crypto as a asset. After imposing tax on crypto asset, we can see big institute and organization in crypto asset, and generate employment opportunities for the youth. which is a good signal for crypto market and crypto industry as well. As time progresses, we will get more clarity regarding crypto assets.

Note- As we know In UK  18%  tax on crypto asset and in USA 20% tax on crypto asset.