The tax deducted from the seller will be required to deposit with the government.With this, the compliance burden will increase for the buyers.
"It is important that the government look at revising the guidelines to encourage entrepreneurship in the Web 3.0 sphere,” said Khaleelulla Baig, co-founder and CEO of Koinbasket.
According to new guidelines, to avoid deduction of tax of digital assests at multiple stages, tax may be deducted only by the exchange which is crediting or making payment to the seller.
CBDT has notified that the TDS collected under Section 194S shall be deposited within 30 days from the end of the month in which the deduction has been made.
Despite the Lok Sabha passing the Finance Bill 2022, introducing a 30% tax on virtual digital assets (VDA) from April 1, the crypto industry still sees space for reasonable changes in tax policy.
Proposes relaxation of penalty provision for claiming cess, surcharge as expenses
Crypto exchanges call measures “detrimental” for the industry
In a written reply to the Lok Sabha, Chaudhary said the government will come out with a definition of virtual digital assets (VDA) with a view to levy 30 per cent tax on income from the transfer of su
Advertising regulatory body issues guidelines for ads to be implemented from April 1; exchanges welcome the move.
Whether this would help investors in making a rational choice while deciding whether to put their money in this risky asset class remains to be seen.
However, while the government’s acknowledgement of the virtual assets’ landscape seems promising, the tax levied on gains from digital assets seems prejudiced.