Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading is our today’s topic. Cryptocurrency: According to Arvind Srivatsan of the Tax Department, the government may consider imposing TDS/TCS on the sale and purchase of cryptocurrencies above a certain limit in the upcoming budget.
Such transactions should be brought under specific transactions to report to income tax authorities. Furthermore, he stated that income from the sale of cryptocurrency should be taxed at a higher rate of 30%, similar to winnings from game shows, lotteries, puzzles, and so on. Let’s start our topic Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading.
Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading
Speaking about what the upcoming Union Budget 2022-23 may have in store for India’s crypto owners on 1 February, Srivats stated that the country currently has the highest number of crypto owners in the world at 10.07 crore, and according to a report, it will have the highest number of Indians in cryptocurrencies by 2030. The total investment is projected to be $241 million.
“A bill to regulate cryptocurrency was expected to be introduced during Parliament’s winter session.” However, it was not introduced, and the bill is now expected to be debated during the budget session. Suppose the government does not prohibit Indians from entering the country. We expect the government to implement a regressive tax structure for Bitcoin because we deal in it,” he said.
He stated that, given the size of the industry, the amount involved, and the danger associated with cryptocurrencies, certain adjustments in their taxes, such as putting them under the laws of tax deducted at source (TDS) and tax collected at source (TDS), may be implemented. (TCS) exceeds a threshold limit that will assist the government in obtaining “investor footprints.” Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading.
Both cryptocurrency sales and purchases should be reported in the Statement of Financial Transactions (SFT).
He claims that trading businesses currently record the sale and acquisition of mutual fund shares and units.
The Income Tax Act includes the notion of SFT or Reportable Account to help taxpayers keep track of high-value transactions.
This assists tax authorities in gathering information on specific high-value transactions carried out by any person during the year.
SFT reporting applies to financial institutions, corporations, and stock market intermediaries. According to Srivatsan, income from the sale of cryptocurrencies, like profits from lotteries, game shows, riddles, and so on, should be taxed at a higher rate of 30%.
The bill comes amid fears that such currencies are being exploited to deceive investors with false claims.
Separately, the government is considering changes to the Income Tax Act to bring cryptocurrencies into the tax net and other changes that could be included in the 2022-23 budget. Hope you enjoy reading our article Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading.