Connect with us

News

CBDT to clarify position regarding crypto tax

Published

on

HIGHLIGHTS ;

  • Profits from crypto trading are taxed at 30 percent
  • TDS of 1% to be paid on every crypto transaction
  • Cryptocurrency trading volume down after-tax implementation

Taxes on crypto trading were announced in this year’s budget and since then this issue has become a cause of controversy among people associated with the crypto industry.

Profits from crypto trading are taxed at 30 percent

The Central Board of Direct Taxes (CBDT) is preparing a list of FAQs (FAQs) related to the crypto tax system that came into force this year. Profits from crypto trading are taxed at 30 percent. Along with this, a TDS of 1 percent will also have to be paid on every crypto transaction.

TDS of 1% to be paid on every crypto transaction

In a program organized by the Income Tax Department, CBDT chief Sangeeta Singh said that the answers to these questions will be released by the beginning of next month. Its purpose is to clarify the situation regarding this tax for the people associated with the crypto segment. CBDT is the apex body controlling tax-related matters. “We are working on the FAQs to clarify the position on the crypto segment,” Singh said. Experts and firms related to the crypto industry have requested the central government to consider reducing the tax by 30 percent on profits from crypto.

Cryptocurrency trading volume down after-tax implementation

Cryptocurrency trading volumes have dropped significantly after the tax for digital assets was introduced. A recent report by research firm Crebaco claimed that crypto trading volumes of crypto exchanges in the country, including CoinDCX and WazirX, have dropped significantly. Crebaco had said, “Trading volumes for cryptocurrencies are falling. This could further decrease. The chances of it rising again are slim. It is clear that the new tax has negatively impacted the market. The government should consider this.” There is no way to stop crypto and because of this the government must embrace the technology.” However, there is confusion regarding the definition of virtual digital assets.

Taxes on crypto trading were announced in this year’s budget and since then this issue has become a cause of controversy among the people of the crypto industry. Many industry experts and crypto enthusiasts have praised the government’s approach to regulating the segment rather than banning it, while others believe that the tax rate on crypto profits should be reduced.

Also read :

iMessage in iOS 16 gets a message edit feature, now more powerful than WhatsApp

Battlegrounds Mobile India is giving chance to win 50 lakh rupees, the registration date announced

 

Click to comment

Leave a Reply

Your email address will not be published.

Copyright © 2020 - 2021 TechZimo.com, All rights reserved.