What is Crypto Tax?

The Indian government introduced a crypto tax regime on February 1, 2022 where a blanket rate of 30% would be applicable on gains from crypto assets or “virtual digital assets" along with 1% tax deducted on the source (TDS) on the transfer of such assets.

 

What are cryptocurrencies?

 

In layman language, cryptocurrencies are digital currencies designed to buy goods and services, similar to our other used currencies. However, since the beginning, it has largely been controversial due to its decentralised nature, meaning its operation without any intermediary like banks, financial institutions, or central authorities.
 

Today, more than 1,500 virtual currencies, such as