Can you tell me about the crypto tax in the Budget 2022?

It is not exactly a crypto tax but a tax on virtual digital products introduced by the Government in Budget 2022 in order to give greater clarity. However, this would also include the cryptocurrency assets. As per the stipulation, any income on sale of such virtual digital products will be taxed at 30% plus any applicable surcharge.

There will be no sub-classification of short term and long term gains. In addition, no expense is allowable to be offset against these gains. Losses on virtual digital assets are not permitted to be adjusted against any other head of income. The payer has to deduct 1% TDS of sale consideration above a threshold for the same of an audit trail.