Capital gains on crypto assets The Budget 2022-23 had announced that gains arising out of VDAs or crypto assets be taxed at a flat rate of 30 percent irrespective of the individual's income tax slab rate. In addition, a 1 percent tax deducted at source (TDS) was introduced on every transfer of such assets. Unlike stocks and mutual funds, the losses from one crypto can't be adjusted against gains from another and no carry forward of losses to future years is allowed. Also read | Donald Trump win: Bitcoin outlook turns bullish, but Indian investors need to be cautious This means that if you sold one bitcoin at a profit and another one at a loss, you still owe 30 percent tax to the government on the profit you booked in one token. However, one bitcoin moving from one of your accounts, or one wallet to another wallet, is seen as an internal transfer. So that's not seen as a commercial transaction. It only gets taxed when it changes hands from one tax entity to another. While computing the income from the sale or transfer of VDAs or crypto assets, an assessee is allowed to only claim the deduction of the cost of acquisition.
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