<span style="font-weight: 400">The past few years observed a hot &amp; rising investment topic amongst many - cryptocurrency. The 2022 Indian Fiscal Budget acknowledges cryptocurrencies. Finance Minister <a href="https://www.cryptoknowmics.com/news/budget-2022-indias-fm-nirmala-sitharaman-announces-india-is-coming-up-with-its-digital-rupee/">Nirmala Sitharaman</a> announced a tax of 30 percent on an income from cryptocurrencies and is categorized under Virtual Digital Assets (VDA) for taxation purposes.</span>
<h2><strong>Implementation of the New Rule</strong></h2>
<span style="font-weight: 400">April 1, 2022, onwards India’s new cryptocurrency tax rule will be implemented and many crypto enthusiasts have begun discussing the drawbacks as well. Leading crypto exchanges believe that small investors will be heavily impacted by tax rates. </span>

<span style="font-weight: 400">As per the data collected from various crypto exchange firms, India has a total of $3 billion as crypto assets, however, many investors only have a portfolio size of Rs 50,000 and Rs 1 Lakh and this bracket is the most impacted. </span>
<h2><strong>The Reaction of the Crypto Community</strong></h2>
<span style="font-weight: 400">Additionally, the brunt of the new crypto rule can be the main cause of a significant dip in trading volume activity and investments. The CEO and Co-founder of <a href="https://www.cryptoknowmics.com/news/crypto-cannot-be-compared-to-gambling-coindcx-ceo-sumit-gupta/">CoinDCX</a>, Sumit Gupta compared the crypto rule to gambling.</span>
<blockquote><em><span style="font-weight: 400">“The lack of an opportunity to offset expenses and carry forward losses will act as a deterrent for small businesses and will hamper wider adoption.”</span></em></blockquote>
<span style="font-weight: 400">Nischal Shetty, the Founder, and CEO of <a href="https://www.cryptoknowmics.com/news/wazirx-ceo-takes-a-dig-at-intellectual-figures-of-india/">WazirX</a> also feel differently about the rule. He stated that the lack of a better understanding of cryptocurrency deters law enforcement and entrepreneurs from functioning seamlessly. He claims that this will be the reason for the suffrage of the Indian crypto ecosystem. </span>

India Will Began Taxing Crypto from April 1

Finance Minister Nirmala Sitharaman announced a tax of 30 percent on an income from cryptocurrencies starting from April 1, 2022.

Priyanka is an active crypto enthusiast. Having graduated with a BA in Journalism and Mass Communication, she is a passionate content writer with a strong understanding of financial content. She has been writing on crypto and blockchain-related topics for the last three years and is an active trader.

India Will Began Taxing Crypto from April 1

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