- Several cryptocurrency platforms and investors took to social media to debate the issue.
- As of July 1, 2022, a 1% TDS will be applied to virtual digital assets.
Tax Deductible at Source (TDS) for virtual digital assets has been reaffirmed at 1 percent, as indicated in the Union Budget for 2022-23, despite the department’s previous statement that it had been reduced to 0.1 percent, causing uncertainty. There was a typo when the department’s website declared earlier that the TDS rate for virtual digital assets had been reduced to 0.1 percent from the 1% rate established in the Union Budget.
Short-Lived Happiness For Investors
When several individuals became aware of the blunder, the website changed its documentation to reflect the correct information. Several cryptocurrency platforms and investors took to social media to debate the issue. It seems to be a typo that has been addressed and updated by the Income Tax Department.
Big update – TDS on virtual digital assets (194S) changed to 0.1% from 1% as per income tax portal.
— Crypto India 🔑 (@CryptooIndia) June 8, 2022
TDS any other income 10% pic.twitter.com/8j9gpKalAn
According to the website, there is no tax if the total value does not exceed approx. $129 (Rs 10,000) in a financial year for a non-specified person and $645 (Rs 50,000) in a financial year for a specified person, both of which are unaltered. As of July 1, 2022, a 1% TDS will be applied to virtual digital assets.
Saravanan Pandian – Founder and CEO – of Koinbazar said:
“Partial Regulation and Heavy taxation are suppressing the huge potential of the crypto sector in India. Government should lay down fair taxation rules and promote crypto in a controlled way as it will drive the economy and bring in job opportunities.”
Indian Finance Minister Nirmala Sitharaman had announced a flat 30% tax on all earnings originating from the sale of virtual digital assets, including cryptocurrency, in the Union Budget of 2022. In addition, the Finance Minister imposed a 1% TDS on all cryptocurrency transactions. The Indian crypto community strongly objected, calling the new rules “unfair” and “destructive.”
A recent trip to the United States by Sitharaman raised questions about the global cryptocurrency market’s potential and called for a regulatory framework that would be acceptable to all nations in an effort to prevent cryptocurrencies from being used for money laundering or terrorist financing.
