Crypto tax: Will investors get relief with ₹10,000 exemption in TDS?
The 30% tax rate on virtual currency assets has come into effect from April 1 and the latest addition was 1% TDS from July 1 this year. This has impacted trading volumes on cryptocurrency exchanges in India. Meanwhile, investors' confidence has also taken a toll.
Making gains on your hard-earned investment isn't always handy or is placed on your plate easily especially when your money is invested in cryptocurrencies. Just like every other investment, income from other sources does come with a host of tax rules and true returns are only calculated after these taxes are paid. Taxes are one of the obligatory requirement that boosts the country's revenue. However, there is always a little escape on your tax payments in the form of tax exemptions although they are always in limited forms, they are meant to give some reliefs. The case is same with India's cryptocurrency market which is recently saw a 30% tax rate along with a 1% TDS. The latest to come into effect is TDS and it gives a ₹10,000 tax exemption. The real question is, does the tax benefit really helps investors.