In the last few years, Bitcoin has exploded in popularity in India. India has one of the largest markets for digital tokens, with over 10 crore cryptocurrency investors. The provision of a tax framework for virtual currency investments has long been a desire of investors. Nirmala Sitharaman, the finance minister, proposed a new tax structure for cryptocurrency investors.
The transfer of any virtual or cryptocurrency asset will be taxed at 30%, according to the Union Budget 2022.
In Budget 2022, the finance minister stated that no deductions other than acquisition costs will be allowed, and no transaction losses will be carried forward.