After 30% tax rate, cryptocurrency assets to bear 1% TDS. How taxes impact crypto gains5 min read 26 Jun 2022, 06:29 PM IST
On June 22, CBDT clarified saying that the new section mandates a person, who is responsible for paying to any resident any sum by way of consideration for the transfer of a virtual digital asset (VDA), to deduct an amount equal to 1% of such sum as income tax thereon.
The much-needed clarification on taxation on cryptocurrency assets in India has been provided. After the 30% tax rate, now cryptocurrency investors will also face a 1% tax deducted at source (TDS) on their assets. However, experts believe that cryptocurrency assets should be treated fairly like other asset classes for overall industry growth. In long term, crypto investors may struggle in hedging liquidity in this market.
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