No deduction except cost of acquisition will be allowed and no loss in transaction will be allowed to be carried forward, the Indian Finance Minister announced in Budget 2022.
TDS will be imposed on payments for the transfer of crypto assets at a rate of 1% for transactions over a certain threshold. Furthermore, gifts of crypto assets will be taxed in the recipient's hands.
Post the pandemic, India’s crypto investing community has been growing at a massive speed with local investors.
According to Reuters, there are 15 to 20 million crypto investors in India. The collective crypto holdings of Indian investors is somewhere around 400 billion INR or $5.37 billion.
Defence R&D will be opened up to the industry, startups and academia with a 25% of defence's earmarked R&D budget.
“NABARD” to facilitate funds to finance startups for agriculture & rural enterprise. Startups will be promoted to facilitate 'Drone Shakti' through varied applications for Drone-As-A-Service (DrAAS).
However, one thing is clear that the government is willing to recognize the crypto asset class. Thus, we can expect further participation from Indian investors this year.