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The government on Tuesday said that it has received 60.46 crore in the form of taxes from entities for transactions in virtual digital assets (VDAs), including cryptocurrencies, since the introduction of TDS provisions in July.

From April 1, the government had brought in a  30 per cent income tax plus surcharge and cess on transfer of crypto assets, like Bitcoin, Ethereum, Tether and Dogecoin.

The government had also introduced 1 per cent tax deducted at source (TDS) under  section 194S of I-T Act on payments over 10,000 towards virtual digital currencies from July 1.

In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said CBDT conducts outreach/ awareness programmes for deductors/taxpayers and also takes appropriate action, including search & seizure operations, surveys, enquiries etc, as required.

"Post insertion of Section 194S in the Income-tax Act, 1961 through Finance Act, 2022, a total of 318 direct tax challans having TDS code 194S have been received having total amount of 60.46 crore," Chaudhary said.

Under the Income-tax Act, 1961, Section 194S has been inserted through the Finance Act, 2022 for deduction of tax at source in respect of transfer of VDAs which is to be complied with by any person engaged in transactions related to VDAs.

The minister further said currently, crypto assets are unregulated in India and the government does not register foreign crypto exchanges.

"Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage," he said. 

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