Govt May Bring Cryptocurrency Under GST: Know What it Means For Investors

Loss in One Crypto Asset Can’t Be Set Off Against Another

In the Union Budget 2022-23, the government has proposed that transfer of any virtual/cryptocurrency asset will be taxed at 30 per cent. No deduction except cost of acquisition will be allowed and no loss in transaction will be allowed to be carried forward.

Today, in a big jolt for the crypto industry, the government on Monday clarified that as per the Budget 2022 proposals investors will not be allowed to set-off losses in one crypto asset against another. Further, mining infrastructure will not be eligible to be deducted as the cost of acquisition.

Along with the 30 per cent tax, the Union Budget 2022-23 has also proposed a 1% TDS on the transfer of such assets. Tax experts were split on whether investors could set off losses in one crypto against another crypto asset. Set-off of losses means adjusting the losses against the profit or income of that particular year. This provision is available in stock investment

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