wordpress blog stats
Connect with us

Hi, what are you looking for?

What are the issues clarified by CBDT’s new guidelines on 1% TDS for digital assets?

India’s central tax authority issues guidelines to clear up confusion over the application of 1% TDS on crypto assets from July 1, 2022.

The Central Board of Direct Taxes (CBDT) has issued guidelines to clear up confusion over the one percent tax deducted at source (TDS) on transfer of a virtual digital asset (VDA) on exchanges. The measure was announced as part of the crypto tax regime announced in the Budget 2022-23 and comes into effect on July 1, 2022. Why it matters: The tax regime was welcomed by the crypto industry stakeholders which saw the announcement as a sign of the government's open attitude towards crypto assets. The rate of taxation however, along with the one percent TDS, left a bitter taste as the industry argued that it was prohibitive and would complicate the smooth functioning of business. What is the basis for the TDS: The Indian government added a new section (194S) in the Income-tax Act, 1961, through the Finance Act 2022. When should tax be deducted: The deduction must be done at the time of payment or at the time of credit of sum (paid to acquire a VDA) to the account of the seller, whichever is earlier. When can deduction be avoided: One does not have to deduct the TDS in the following scenarios— Sum to acquire a VDA is payable by a specified person and the value of such sum does not exceed Rs.50,000 during the financial year; Consideration is payable by any person other than a specified person and the value of such consideration does not exceed Rs.10,000 during the financial year. A specified person has been defined…

Please subscribe/login to read the full story.
Written By

I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

Free Reads

News

According to Russian investigators, Stone had published online comments that defended hostile and violent actions against Russian military personnel.

News

bank-owned P-PA services do not require any authorization, but will also have to ensure compliance with other requirements for P-PAs.

News

However, it is possible to opt-out of the clause by emailing an opt-out notice to arbitration-opt-out@discord.com within 30 days of April 15, 2024, or...

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ