Finance Minister Nirmala Sitharaman introduced a specific tax regime for virtual digital assets in the Union 2022-23 budget.
These virtual assets include Cryptocurrency and NFTS (non-fungs tokens).
This is what you need to know.
How many taxis from transferring any virtual digital assets will be taxed by 30%.
FM said that there had been a phenomenal increase in transactions in virtual digital assets.
The magnitude and frequency of this transaction make it very important to provide certain tax regimes.
From when taxation will occur to the government will collect 30% tax on profits made from personal digital assets from April 1, 2022.
Provisions related to 1 percent TDS will come into force since July 1, 2022, while the increase will be effective effective April 1 is everything The type of reduction reduction is permitted with respect to expenses or benefits that will be permitted when calculating the income except the cost of acquisition.
The 2022-23 budget also proposes 1% TDS for payments against the virtual currency outside the RS 10,000 in a year.
“TDS has been proposed to track the trace of money in Cryptocurrency,” FM said.
Will the digital rupee also a taxi, the RBI digital rupee will not be under this tax rule.
All private cryptocurrency and virtual digital assets other than digital rupees will be subject to 30% tax.
What about the Cryptocurrencyon regulation regulation of Cryptocurrency, Sitharaman said that the government conducted stakeholder consultations about regulating virtual assets.
What other important provisions from this 30% tax, other requirements include: * Losses from transfers of virtual digital assets cannot be turned on other income.
* To capture transaction details, TDS will be given a payment conducted in connection with the transfer of virtual digital assets at the level of 1% of the consideration above the monetary threshold.
* Virtual digital asset gifts are also taxed in the hands of the receiver.