Indian government announces it will bring crypto under legal framework, taxable at 30% of gains. No capital losses or business expenses allowed

Indian government just announced that crypto will be taxed at 30% of gains. This is the first time the Indian government is discussing crypto taxation. The tax will apply to all gains on digital virtual assets, and no capital losses will be allowed. Business expenses will also not be allowed.

Gifts in the form of digital currency will be also taxed in the hands of the receiver.

This is a landmark announcement as the first time the Indian government is announcing any law or regulation around crypto. So far nothing concrete was announced except rumors in the media.

Now crypto being a taxable asset will lead to growth of adoption of crypto in India

I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition: FM Nirmala Sitharaman

Edit : Some sources are saying capital gains losses is not allowed only for offsetting it with other income sources. But it is still allowed within crypto. Waiting for more clarity on this.

Edit 2: It seems completely no capital losses. https://www.indiabudget.gov.in/doc/memo.pdf

However, no deduction in respect of any expenditure (other than cost of acquisition) or allowance or set off of any loss shall be allowed to the assessee under any provision of the Act while computing income from transfer of such asset

Further, no set off of any loss arising from transfer of virtual digital asset shall be allowed against any income computed under any other provision of the Act and such loss shall not be allowed to be carried forward to subsequent assessment years.

Edit 3: Most reaction seem to suggest 30% is really harsh. Especially when long term capital gains from stocks is like 10%. 30% will apply for developers and builders too, which will mean they will move to friendly tax jurisdictions rather than remain in India. Seems like a dumb and self defeating policy tbh.

The law taxes not profits but even transfers. So even simple actions like staking or moving funds or using a smart contract would become taxable. This is insane