Did you know that Government is considering imposing TDS/TCS on the sale and purchase of cryptocurrencies?
Yes, you heard it right. The ‘Cryptocurrency and Regulation of the Official Digital Currency Bill’ is now expected to be introduced at the Parliamentary Budget Conference from 31 January. And the government is planning to levy 30% tax on the Income from sale of Cryptocurrencies.
With all the regulations and rules coming up for Cryptocurrency. In the upcomping cryptocurrency bill. Calculating crypto taxes can take a lot of your time and can be a headache for you.
The Government in the next Budget may consider forcing TDS / TCS to sell and buy cryptocurrencies over a certain range. And such transactions should be brought under specified use for reporting purposes to tax authorities, said Aravind Srivatsan. He is tax leader and partner of Nanganga Andersen LLP.
In addition, a 30% higher tax rate should be levied on revenue from cryptocurrency sales according new cryptocurrency Bill. Such as winnings from game shows, lotteries, puzzles, etc., tells PTI.
Commenting on the Union Budget 2022-23, scheduled for February 1st. Srivatsan said at the moment on cryptocurrency bill. The country has the highest number of crypto owners worldwide, at 10.07 crore and as per the report.
According to me, now people should start investing in crypto by trusting it again. This cryptocurrency is still a letter of trust as it was before. It is expected that Indian investment in cryptocurrency. Crypto could reach $ 241 million by 2030
Is Cryptocurrencies will come in New form?
“It was expected that a bill would be introduced. During the Winter Session of Parliament to regulate cryptocurrencies.
Now, the government is expected to pass the bill in the Budget Section, he pointed out. Considering the size of the market, the amount involved, and the risks, he said. And the source tax levy (TCS) above the limit that would help the government get “investor measures”.
All cryptocurrency transactions should be reported at (SFT). According to the Cryptocurrency Transaction Reporting Principles for Financial Transactions (SFT).
Trading companies are already making a similar report on the sale and purchase of shares and units of joint ventures, he said.
In order to keep the clock in taxpayer high performance. The Income Tax Act has the concept of SFT or accountable account.
This helps tax authorities to gather information about certain transaction transactions made by any person during the year.
How Calculate Cryptocurrency?
You can visit on Cleartax to calculate your Crypto Transaction.
Budget Expectations, Crypto exchanges!
Crypto exchanges seek legal recognition Financial institutions, companies and stock market participants fall within the SFT report. Srivatsan said that such as winning from lottery, game shows, puzzles, etc. Income from cryptocurrency transactions will be taxed at a higher tax rate of 30 percent.
Ahead of Parliament’s winter session that ended on December 23, the government had included a bill to introduce cryptocurrencies.
And it’s lure investors with misleading claims. Currently, there is no regulation or any restriction on the use of crypto currencies in the country.
A bill known as the Cryptocurrency Act and Regulation of Official Digital Currency Act.
Separately, the government is incorporating changes in tax laws to bring cryptocurrencies under the tax net. And some changes could be part of the 2022- Budget.
According to me, now people should start investing in crypto by trusting it again. This cryptocurrency is still a letter of trust as it was before.
Is Crypto outflows will record highest peak in 2022?
These challenges are real because because of their existence. Cryptocurrencies create serious challenges in fiat finance, contracts, border controls and taxes.
The type of money and audiences that are now more than a niche and the technology that empowers them has compulsory use in the future, now commonly referred to as Metaverse.
While cases of the use of crypto as a currency (exchange rate) or as financial assets (stock market). And independent decisions in Central Bank Digital Currencies.
Cross-border trading with crypto and trading between fiat and crypto are commonplace regulators, use. Cases such as NFT grow in conjunction with minor disruptions arising from the establishment.