New Tax Rule for VDA's in India from April 1: want to know key details
Taxation of virtual digital assets (VDAs) or "crypto tax" proposed in the Union Budget 2022-23 is set to be implemented from April 1.
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After the passage of the Finance Bill, 2022 that include approval on ''crypto tax'' amendments in the Lok Sabha, taxation of virtual digital assets (VDAs) or "crypto tax" proposed in the Union Budget 2022-23 will be implemented from April 1.
The Lok Sabha also passed the amendments introduced in the Finance Bill, 2022 regarding clarification on taxation of virtual digital assets.
Here are the key rules of Crypto Tax in India form 1st April
As per the amendment, the word "other" is dropped. Under the amended law, loss from crypto assets cannot be set off against gains in crypto assets as well.
As regards 1 per cent TDS, she said it is more for tracking such transactions and can be reconciled at the time of payment of taxes.
Section 115BBH of the Bill deals with tax on virtual digital assets. Clause (2)(b) prevents loss on the trading of crypto assets from being set off against income under "any other provision" of the IT Act.
As per the amendment, the word "other" is dropped. Under the amended law, loss from crypto assets cannot be set off against gains in crypto assets as well.
The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. From April 1, a 30 per cent I-T plus cess and surcharges, will be levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.
It has also proposed a 1 per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act.