New Delhi: We all know cryptocurrencies are highly volatile in nature due to no regulation over them by any government or banks. This invited a lot of people to invest in and use it for illegal purposes. However, the Indian government announces to impose a tax on the profit and TDS on every transaction to control its spread in India during the 2022 budget sessions.
The new rule will come into effect from April 1. Many experts have been suggesting selling your crypto holding by March 31. This raises a question to mind — what should you do if you are holding cryptos?
Why sell crypto assets by 31 march
According to experts, we should sell our crypto holdings to book profits or even losses before the end of the current financial year. It is because the government is not willing to change the rules laid down in the Union Budget and also has not accepted any of the suggestions recommended by the crypto industry.
The new rulesv call for a flat tax of 30% on all gains through cryptocurrencies. If anyone sells their crypto assets after April 1 and earns a profit. He has to give 30% of his profit to the government as a tax.
In the worst scenario, losses from crypto assets cannot be set off from gains of other crypto coins. This is why crypto experts suggest selling crypto holding in the current financial year (2021-22). The losses from cyptos can also be adjusted from other capital gains before the end of the financial year.
Tax experts feel the new rules are discouraging in nature for investors of cryptos.
