Rajkotupdates.News : Government May Consider Levying TDS TCS on Cryptocurrency Trading!

The government could contemplate imposing TDS/TCS on the sale and purchase of cryptocurrencies above a certain threshold, and such transactions should be brought under the purview of specified transactions for the purpose of reporting to the income tax authorities.

Aravia Srivatsan, the tax leader at Nangia Andersen LLP, says that bringing cryptocurrencies under the provisions of tax deducted at source (TDS) and tax collected at source (TCS) above a threshold limit will help the government get the “footprints of the investors” in light of the size of the market, the amount involved, and the risk associated with cryptocurrencies.

Rajkotupdates.News : Government May Consider Levying TDS TCS on Cryptocurrency Trading!

Similarly to profits from the lottery, game shows, puzzles, etc., income from the sale of cryptocurrencies should be taxed at a higher rate of 30%, he added.

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Currently, India has the highest number of crypto proprietors in the world, at 10.07 crore, and a report predicts that by 2030, Indians will have invested $241 million in cryptocurrencies.

“During the Winter Session of Parliament, a measure to regulate cryptocurrencies was anticipated. However, it was not introduced, and it is now anticipated that this measure will be considered during the Budget Session.

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If the government does not prohibit Indians from trading cryptocurrencies, we anticipate that it will implement a regressive tax system for cryptocurrencies “He observed.