"Crypto Mining Infrastructure Cost will not be treated as the cost of acquisition." Govt said.
The Decision to disallow offset between different cryptos and mining expenses is regressive and will discourage investor participation.
Loss from transfer of VDA will not be allowed to be set off against income arising from transfer of another VDA.
No deduction in respect of any expenditure other than cost of acquisition will be allowed.
The 2022-23 Budget has proposed levying income tax of 30% on crypto assets with effect from April 1, 2022.
The Finance Bill also proposes to define VDA as Virtual Digital Assets.
If any asset falls within the proposed definition, such virtual asset will be considered as VDA.
"This decision may drive away investors from authorised platforms to grey markets." said industry experts.
CEO of WazirX said "Its very unfortunate and we urge the government to reconsider this."
CEO of CoinSwitch said "This is detrimental for India's crypto industry and the millions who have invested in this emerging asset class."
"It's a continued effort to isolate and disincentrivise cryptocurrency related activities in India." said Rohinton Sidhwa.
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