Cryptocurrency tax: Relief for crypto investors as Budget ushers in norms

Until now, millions of investors in digital/virtual assets (cryptocurrencies and non-fungible tokens, or NFTs) in the country worried they could be hauled up by the tax department for filing their income-tax returns vis-à-vis this asset class incorrectly. Now, finally, Finance Minister (FM) Nirmala Sitharaman has provided clarity on how they are to be taxed. The FM has announced a 30 per cent tax on any income from the transfer of virtual/digital assets.

Recognition at last

Taxing these assets means the government will treat them as a legitimate asset class. An earlier draft Bill had proposed up to ten years in