The Indian government may be thinking about taxing cryptocurrency transactions via TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). Rajkotupdates. news, a website devoted to presenting the most recent news from Rajkot, India, broke this story first.
The action is viewed as a means of increasing openness and responsibility in the cryptocurrency trading market. Additionally, it would assist the government in keeping track of transactions and ensuring that the correct amount of taxes is paid for them.
As a result of having to pay taxes on their trading earnings, this decision could have a substantial effect on Indian bitcoin traders. The government’s implementation of this decision has yet to be observed.
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The Indian government has been thinking of taxing cryptocurrency transactions through Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). This action is viewed as a means of increasing responsibility and transparency in the cryptocurrency industry.
Rajkotupdates. news reports that this action could be taken shortly to make sure that taxes are paid on gains from cryptocurrency trading. This might have a significant impact on the Indian cryptocurrency business and increase regulation of the industry.
SFT reporting applies to financial institutions, businesses, and stock market intermediaries. According to Srivatsan, the income derived from the sale of cryptocurrencies should be subject to a higher tax rate of 30%, just like prizes from the lottery, game shows, puzzles, etc.
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The administration had a bill on the agenda for introduction before the winter session of Parliament, which ended on December 23. The bill is being introduced amid worries that these currencies may be used to deceive investors.
The usage of cryptocurrencies is currently not restricted or prohibited in the nation.
It is now anticipated that the “Cryptocurrency and Regulation of Official Digital Currency Bill” will be introduced during the budget session of Parliament, which starts on January 31.
Separately, the government is considering revisions to income tax legislation that would include cryptocurrencies and some other adjustments that might be included in the 2022–23 Budget.