As of April 1,2022, a new flat rate tax for the transfer of digital assets came into effect in India. This tax affects both cyrptocurrency transactions and NFTs.
Under this new tax, investors will be charged a flat rate of 30% on any Virtual Digital Assets (“VDAs”) that are transferred at a profit. Losses or expenses from other transactions, such as trading losses from one crypto transaction, cannot be set off against gains from another crypto transaction, so as to reduce or eliminate the tax.