Connect with us

Business

Earnings from cryptocurrencies will be taxed from April 1, how much and how? understand in 10 points

Earnings from cryptocurrencies will be taxed from April 1, how much and how?  understand in 10 points


30% tax on digital assets

1- Profits from cryptocurrencies will be taxed at the rate of 30 percent. This taxation will certainly affect the after-tax returns of cryptocurrency transactions.

2- If you bought crypto for 15 thousand and sold it for 45 thousand rupees, then your direct profit is 30 thousand rupees. It will be taxed as follows

Sales consideration- Rs.45 thousand
Low cost of acquisition – Rs 15 thousand
Taxable profit- 30 thousand
30% Income Tax- 9 thousand

TDS

TDS

3- 1 percent TDS has been proposed on transactions involving cryptocurrencies. That is, you can sell cryptocurrencies for profit or loss but TDS will be 1% for sure. Can claim refund of TDS on loss transactions. So if you are into cryptocurrency transactions then definitely fill in the income tax return.

4- The TDS limit will be Rs 50,000 per annum for specified persons. This includes individuals/HUFs who are required to get their accounts audited under the I-T Act.

5- The provisions relating to 1 per cent TDS will come into effect from July 1, 2022, while profits from cryptocurrencies will be taxed with effect from April 1.

Tax on crypto gifts

Tax on crypto gifts

6- If you receive cryptocurrency or any other virtual digital asset as a gift, it will be liable to taxation as of post budget 2022 of the gift.

7- Finance Minister Nirmala Sitharaman said the scheme would not allow any deduction in respect of any expenditure or allowance while computing such income except the cost of acquisition.

8- Last week the Lok Sabha approved the taxation rules on Virtual Digital Assets (VDA) or “crypto tax”, which was proposed in Budget 2022-23 by approving the Finance Bill 2022.

Will not be able to set off the loss from other income

Will not be able to set off the loss from other income

9- Section 115BBH under the Bill deals with tax on virtual digital assets (VDAs), while section (2)(b) sets off loss from crypto assets against income under “any other provision” of the IT Act. prohibits. Simultaneously, the word “others” for VDA has been omitted under the Bill.

10- This would mean that the loss arising from transfer of Virtual Digital Assets (VDA) would not be allowed to be set-off against the proceeds from the second VDA transfer.



Credit

Newsletter Signup

Click to comment

Leave a Reply

Your email address will not be published.

Sexy Video From Maldives: KKK 11 babe Anushka Sen units temperature hovering in white bikini, are you in love?  ,  MSN News Sexy Video From Maldives: KKK 11 babe Anushka Sen units temperature hovering in white bikini, are you in love?  ,  MSN News

Sexy Video From Maldives: KKK 11 babe Anushka Sen units temperature hovering in white bikini, are you in love? , MSN News

Sexy Video

Sexy Video: Nora Fatehi is essentially the most sensuous videsi babe in desi saree, followers go bananas |  MSN News Sexy Video: Nora Fatehi is essentially the most sensuous videsi babe in desi saree, followers go bananas |  MSN News

Sexy Video: Nora Fatehi is essentially the most sensuous videsi babe in desi saree, followers go bananas | MSN News

Sexy Video

Sexy Video: Elli AvrRam units temperature hovering at seaside, followers go swalala |  MSN News Sexy Video: Elli AvrRam units temperature hovering at seaside, followers go swalala |  MSN News

Sexy Video: Elli AvrRam units temperature hovering at seaside, followers go swalala | MSN News

Sexy Video

Sunny Leone went daring by the poolside;  Shocking footage of the inventory Sunny Leone went daring by the poolside;  Shocking footage of the inventory

Sunny Leone went daring by the poolside; Shocking footage of the inventory

Actress

Advertisement
Newsletter Signup