Giving clarity on taxation of cryptocurrencies and other virtual assets, Finance Minister Nirmala Sitharaman proposed a 30 per cent tax on income from transactions in such assets.

Also, to bring such assets under the tax net, she proposed a 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets will also be taxed, she said. The tax proposals will come into effect from April 1 after the passage of the Union Budget in Parliament. Meeting demands from large sections of industry, she said the RBI will launch a 'Digital Rupee' based on blockchain technology in 2022-23.