Important provisions may come on crypto trading in Budget 2022, TDS/TCS may be considered

Important provisions may come on crypto trading in Budget 2022, TDS/TCS may be considered

TDS/TCS may be addressed in Budget 2022, and important provisions on crypto trading may be included.

New Delhi: The government may consider bringing the purchase and sale of cryptocurrencies under the purview of tax in the upcoming general budget.  An analyst in the tax sector has expressed this opinion.  Arvind Srivatsan, Head of Taxes, Nangia Andersen LLP said that the government may consider levying TDS/TCS on sale and purchase of cryptocurrencies above a certain threshold in the upcoming budget and such transactions should be brought under the purview of special transactions,  So that income tax officers can get their information.

At the same time, he said that income from the sale of cryptocurrencies should be taxed at a higher tax rate of 30 percent like lotteries, game shows, puzzles.  Srivatsan said that India currently has the largest number of crypto owners globally at around 100.7 million, and according to a report, investment in cryptocurrencies by Indians could increase to $241 million by 2030.

Talking to PTI on the upcoming general budget, he said, “A bill was expected to be introduced in the winter session of Parliament to regulate cryptocurrency.  However, it was not introduced, and now it is expected that the government can bring this bill in the budget session.  If the government does not ban Indians from trading in cryptocurrencies, we expect the government to introduce a regressive tax regime for cryptocurrencies.

Considering the size of the market, the amount involved and the risk involved with cryptocurrencies, some changes may be made in its taxation, such as bringing them under the ambit of tax deducted at source (TDS) and tax collected at source (TCS), he added.  May go.  He said that both the sale and purchase of cryptocurrencies should be brought under the purview of Financial Transaction Statement (SFT).  By doing this they can be monitored.

Srivatsan said that income from sale of cryptocurrencies on the lines of lotteries, game shows, puzzles etc should be taxed at a higher rate of 30 per cent.

Source: Syndicate Feed

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