Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading
Cryptocurrency: In the next budget, the government may consider putting TDS/TCS on the sale and purchase of cryptocurrencies above a certain limit. Arvind Srivatsan of the Tax Department, Leader, and Partner, Nangia Anderson LLP, said these transactions should be added to the list of specific transactions that must be reported to the income tax authorities.
Also, he told PTI that income from the sale of cryptocurrency should be taxed at a higher rate of 30%, like wins from game shows, lotteries, puzzles, etc.
On February 1, Srivats talked about what the upcoming Union Budget 2022-23 might have in store for India’s crypto owners. He said India has the most crypto owners in the world (10.07 crore), and a report says that by 2030, India will have the most people who own cryptocurrencies. About $241 million is expected to be put in.
Related Article: Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading
A Bill To Regulate Cryptocurrency
“During the winter session of Parliament, a bill to regulate cryptocurrency was supposed to be put forward. But it was not presented, and now the budget session is when the government is expected to discuss it. Suppose the government doesn’t ban Indians. We expect that if we trade in cryptocurrencies, the government will put in place a tax system that favors the rich over the poor,” he said.
He said that because of how big the market is, how much money is involved, and how risky cryptocurrencies are, there might be changes to how they are taxed, such as putting them under tax deducted at source (TDS) and tax collected at source (TDS) rules. (TCS) is above a ceiling that will help the government get “investor footprints.”
The Statement of Financial Transactions (SFT) should be used to report both sales and purchases of coins.
He said that trading firms report the same thing when they sell and buy shares and mutual fund units.
The Income Tax Act has the idea of an SFT or Reportable Account to keep track of high-value transactions made by the user.
Related Article: Rajkotupdates.News : Government May Consider Levying Tds Tcs On Cryptocurrency Trading
This makes it easier for tax officials to learn about certain high-value transactions that anyone made during the year.
SFT reporting is for financial firms, businesses, and people who work in the stock market. Srivatsan said that people who make money from selling cryptocurrencies, like people who win money in raffles, game shows, puzzles, etc., should pay a higher tax rate of 30%.
People are worried that these currencies are being used to trick investors with false claims. This is why the bill was made.
The government is also considering changing the Income Tax Act and the 2022-23 budget to bring coins into the tax system.
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