GOI may seek crypto log on transactions from banks, exchanges
Published On: Thursday, March 24, 2022 | By: Team KnowMyStock
As the government begins taxing gains from cryptocurrencies and non-fungible tokens from April the Indian tax authorities may tell banks and crypto exchanges to report transactions of virtual digital assets (VDAs). So far, the tax department has relied on voluntary disclosures on transactions of VDAs. Once implemented, the sale and purchase of digital assets will reflect in the Annual Information Statement (AIS). The move will ensure that the details about VDA-related transactions are available with the authorities on a real-time basis, and there would be lower chances of revenue leakage or their going unexamined.
According to aSenior tax official,once the taxation rules are in place, the department may deliberate whether to mandate the reporting of digital asset transactions as part of specified financial transactions (SFTs) furnished by prescribed entities.
Even though the government is yet to put out the regulations for VDAs or cryptocurrencies, the Union Budget has introduced a new tax regime for the income gained through them, stating that the gains made from the asset transfer would be taxed at 30 per cent. Furthermore, it imposes a 1 per cent tax deducted at source, or TDS, on payments related to transfers of digital assets.
The Central Board of Direct Taxes is expected to put out the terms of taxation by the end of this month.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
