New Delhi: The government can consider the upcoming budget of Levying Tds / TCS that are being sold and the purchase of the Cryptocurrency above a certain threshold and the transaction must be brought in the ambition of the transaction determined for the purpose of reporting to the Income Tax Authority, Nangia Andersen LLP Tax Leader Aravind Srivatsan said .
Also, a higher tax rate of 30 percent must be collected income from the sale of Cryptocurrency, similar to the victory of the lottery, game shows, puzzles, etc., he said.
Speaking to PTI about what budget 2022-23, to be launched by the government on February 1, can have at the Crypto store in India, Srivatsan said at present, India has the highest number of Crypto owners globally, at 10.07 crores and according to the expected reports of investment By Indians in Cryptocurrency can touch USD 241 million in 2030.
“The bill is expected to be served during the parliamentary winter session to regulate the cryptocurrency.
However, it is not introduced, and now it is expected that the government can take this bill in a budget session.
If the government Do not forbid Indians from dealing with Cryptocurrency, we hope that the government can introduce a regressive tax regime for cryptocurrency, “he said.
He said considering market size, the amount involved, and the risk coupled with cryptocurrency, certain changes can be carried in the Cryptocurrency taxation such as bringing them under the tax conditions deducted on the source (TDS) and the tax collected at the TCS source) above the threshold limit which will help the government get a “investor footprint”.
Both sales and purchases of cryptocurrency must be carried under the Ambit Reporting in the financial transaction statement (SFT).
Trading companies have reported sales and purchasing similar funds and mutual fund units, he said.
To maintain a watch with high-value transactions carried out by taxpayers, income tax laws have the concept of SFT or accounts that can be reported.
This helps tax authorities to gather information about certain prescribed high-value transactions carried out by anyone during this year.
Financial institutions, companies and stock market intermediaries are within the scope of SFT reporting.
Srivatsan said similar to victory from lotteries, game shows, puzzles, etc.
A 30 percent higher tax rate must be collected income from the sale of Cryptocurrency.
Towards the parliamentary winter session which ended on December 23, the government has registered to introduce the bill to regulate the cryptocurrency.
The bill came amid fears over the currency allegedly used to attract investors with misleading claims.
At present, there are no regulations or prohibitions for using cryptocurrency in this country.
‘Cryptocurrency and Regulations The official Digital Currency Bill’ is now expected to be introduced in parliamentary budget sessions starting January 31.
Separately, the government reflects on changes in income tax laws to bring Cryptocurrency under the tax mesh, and some of these changes can form part of the budget of 2022-23.