Regarding profits from transactions related to cryptocurrencies, Sitharaman said, “Whether it is legal or illegal is a different question but it will be taxed.” He gave this information in response to a question asked by Congress MP Chhaya Verma on cryptocurrency. Verma had asked whether taxing cryptocurrencies was legal. Sitharaman had said in her budget speech that only digital currency issued by the Reserve Bank of India (RBI) would be recognized as currency and the government would tax profits from any other private digital asset with effect from April 1. Percentage tax.
In the budget, it was proposed to levy 1 percent TDS on payments of more than Rs 10,000 in a year for virtual currencies and tax on the recipient of such gift. The limit for TDS will be Rs 50,000 in a year for people falling in the special category. These include individuals/Hindu Undivided Families (HUFs) who will have to get their accounts audited under the Income Tax Act. No deduction of expenditure or allowance shall be allowed for computing the income from transactions in such assets. It has also been clarified that the loss arising from transfer of Virtual Digital Assets will not be allowed to be set off against any other income.
The provision of TDS of 1 percent on payments for virtual currencies will be applicable from July 1 and taxation of profit will be applicable from April 1. Earlier, some organizations like Swadeshi Jagran Manch have demanded a ban on cryptocurrencies. These organizations say that cryptocurrencies can be used to fund illegal activities and money laundering. Some countries like America are also considering making laws regarding cryptocurrencies.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–
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