Cryptocurrency Taxation: Big information about cryptocurrencies has come to the fore. If you also invest in cryptocurrencies, then soon things can be cleared about GST for you. The government is working on taxation on cryptocurrencies. An official said that after repeatedly asking questions to the government, it was found that work is being done on the FAQ of taxation.
Things will be clear about GST
Let us tell you that from the FAQ, things will be clarified regarding the tax on virtual digital assets and the imposition of Goods and Services Tax (GST). The official said that the draft set of FAQs is being prepared by the Department of Economic Affairs (DEA), Reserve Bank and Department of Revenue. It will be reviewed by the Law Ministry.
information given by the officer
“Frequently asked questions regarding cryptocurrency and virtual digital asset tax are in progress. Though the FAQs are for informational purposes and have no legal validity, the opinion of the Law Ministry is being sought to ensure that there are no loopholes.
Tax on digital currency should be clear
The official said that the DEA, the revenue department and the Reserve Bank are working to ensure that the taxation aspect is clear to the field tax offices and those dealing in cryptocurrencies and other digital currencies.
In the budget, it was announced to impose 30 percent tax
In the budget for the financial year 2022-23, things have been clarified regarding taxing crypto assets. With effect from April 1, such transactions will attract income tax, cess and surcharge of 30 per cent in the same manner as the tax law imposes on horse racing or other betting transactions.
TDS limit will be 50,000
Budget 2022-23 also proposes a one per cent tax deduction at source (TDS) on payments exceeding Rs 10,000 in a year in virtual currencies and taxation on recipients of such gifts. Under this, the TDS limit will be Rs 50,000 per annum for certain special persons. These include individuals/HUFs etc. who will have to get their accounts audited under the Income Tax Act.
Now 18% GST is levied
Let us tell you that the provision of one percent TDS will be applicable from July 1, 2022, while the tax on profit will be levied from April 1. From the point of view of GST, the FAQ will make it clear whether cryptocurrency is a good or a service. Currently, services provided by crypto exchanges attract 18 per cent GST and are classified as financial services.