India to add a massive tax to cryptocurrency and NFT transactions

India's finance minister has announced a plan to tax all income from cryptocurrency and NFT transactions as the cryptocurrency space grows exponentially throughout the nation.

According to India's finance minister Nirmala Sitharaman who made announced this past Tuesday that the country will be introducing a tax on all income from cryptocurrency and NFT. Sitharaman proposed that regulatory agencies will be introducing a flat 30% on all cryptocurrency income and a 1% tax deduction on all purchases of virtual assets.

The proposal from the nation's finance minister follows an exponentially growing cryptocurrency and NFT space, as Binance-owned WazirX announced last month that the yearly trading volume throughout its platform on 2021 has grown "1,735%" to $43 billion, compared to 2020. Additionally, India's central bank will be proposing a federally backed digital currency throughout the next financial year. India seems to be taking steps towards legalizing cryptocurrency as a whole.

"No deduction in respect of any expenditure or allowance shall be allowed while computing such income except cost of acquisition. Further, loss from transfer of digital asset cannot be set off against any other income. Gift of virtual digital asset is also proposed to be taxed at the hand of the recipient," said the nation's finance minister Nirmala Sitharaman.

"Introduction of a central bank digital currency will give a big boost to digital economy. Digital currency will also lead to a more efficient and cheaper currency management system," she said