NO deduction of any expenditure or allowance, apart from cost of acquisition of Crypto; Govt Clarifies

Mr. Karti P. Chidambaram, MP Raised a Question Whether the Infrastructure costs incurred in mining cryptocurrency are to be treated as cost of acquisition and therefore permissible deductions?

Mr. Pankaj Chaudhary, Minister of State for Finance responds to questions on taxation of cryptocurrency raised by Mr. Karti P. Chidambaram, MP; MoS clarifies that no deduction of any expenditure or allowance, apart from cost of acquisition, will be allowed while computing the income from transfer of virtual digital assets as per the provisions of Finance Bill, 2022; He further clarifies that infrastructure cost will not be treated as cost of acquisition for mining crypto assets and it shall be considered as capital expenditure not allowable as deduction; Lastly, the Minister states that loss from transfer of a virtual digital asset shall not be allowed for set off against income arising from another virtual digital asset.