Tax On Virtual Digital Assets Nets Government Rs 158 Crore In FY23
Any income from transfer of crypto assets is taxed at 30%.
Tax collected at source from virtual digital assets aggregated to Rs 157.9 crore up till March 20, 2023, the Minister of State for Finance, Pankaj Chaudhary, said in the Rajya Sabha.
VDAs include cryptocurrencies, non-fungible tokens, and other decentralised financial tokens. According to budget 2022, any income from the transfer of such crypto assets is taxed at 30%.
Crypto assets are currently unregulated in the country, Chaudhary said, while answering a question raised by Janata Dal leader Ram Nath Thakur. "... transactions in cryptocurrencies are subjected to provisions of various laws, like the Prevention of Money Laundering Act, 2002, and the Income-Tax Act, 1961," he said.
Currently, INR to crypto and crypto to INR transactions, the transfer of virtual digital assets, and extending financial services to a sale offer of virtual digital assets all fall within the purview of the Prevention of Money Laundering Act.
The minister also brought up a consultative document on crypto transactions by the Financial Stability Board, titled Regulation, Supervision, and Oversight of Crypto-Asset Activities and Markets.
"Investment and activity in the crypto-asset market is largely self-contained and is mostly for speculative purposes with limited connections to the real economy," the document said.