FinMin proposes changes to Finance Bill for crypto assets' taxation

FM Sitharaman is expected to move an amendment clarifying that no tax deduction or set off would be available in place of mining cost of crypto assets and other VDAs or losses from their transfer

The government on Thursday proposed to tighten the norms for taxation of cryptocurrencies by disallowing set-off of any losses with gains from other virtual digital assets (VDAs). This was part of the 39 amendments proposed by the government to the Finance Bill, 2022.

Finance Minister Nirmala Sitharaman is expected to move an amendment on Friday, clarifying that no tax deduction or set off would be available in place of mining cost of crypto assets and other VDAs or losses from their transfer. 

Besides, all “transfers” of VDAs or crypto assets would be covered under the proposed 30 per cent tax, irrespective of