Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Indian Crypto Players Have A New Tax Rule From Today: What You Should Know

Published 01/07/2022, 05:04
Updated 01/07/2022, 05:40
© Reuters.  Indian Crypto Players Have A New Tax Rule From Today: What You Should Know

© Reuters. Indian Crypto Players Have A New Tax Rule From Today: What You Should Know

Indian cryptocurrency players will have to comply with a government order for a 1% tax deducted at source (TDS) on all cryptocurrency and non fungible token (NFT) transactions, starting today.

What Happened: The law, which the Prime Minister Narendra Modi-led government introduced during the Union Budget in February, will be effective from July 1 (Friday) for transactions of more than 10,000 rupees ($126).

The Central Board of Direct Taxes (CBDT) under the Indian Ministry of Finance said the tax will be deducted when the sum gets credited to the resident's account or at the time of payment, whichever is earlier.

On April 1, the government introduced a 30% tax on all profits earned from cryptocurrency trading.

How Crypto TDS Will Be Done

Peer-To-Peer Transaction: In a peer-to-peer transaction, with no broker or exchange involved, the buyer will be required to deduct the TDS under the given section, which will then have to be deposited with the government under relevant provisions of income tax rules.

Broker Or Exchange Transactions: When an investor transfers virtual digital assets (VDA) such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) through an exchange or a broker, the tax may only be deducted by the exchange which is crediting or making payment to the seller.

For NFTs, Other VDAs: If an exchange owns VDA, the buyer or his broker is primarily responsible for deducting the TDS. However, the parties may enter a written agreement to pay the tax for all such transactions.

For Crypto To Crypto Transactions: In these transactions, the TDS must be deducted in cryptocurrency alone. The government notification said the cryptocurrency would be required to be converted into Indian rupees by 11.59 PM on the same day.

Read Next: Coinbase (NASDAQ:COIN) To Lay Off 8% Of India Team — But Makes This Key Top-Level Hire

Photo via Cryptographer on Shutterstock

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.