The new rule of TDS is applicable from July 1 on transactions in Cryptocurrency.
For filling Form 26QE, you will have to provide the date of transfer of virtual digital asset, value of VDA and payment mode of VDA. Whether the payment is in cash or exchanged with any other VDA, all these details will have to be given in Form 26QE.
Virtual Digital Asset (VDAThe Income Tax Department has issued a detailed guideline regarding the TDS to be deducted. It states that the TDS on VDA or cryptocurrency (TDS) what information will be included in the . It will be necessary to mention the date of transfer of cryptocurrency and mode of payment along with TDS. From July 1, 1% TDS will be deducted on the payment of VDA or cryptocurrency. However, this tax will be deducted only if more than Rs 10,000 is paid for cryptocurrencies in a year. A new provision has been announced in this budget. Accordingly, section 194S has been added to the IT Act. Here TDS stands for Deduction at Source.
The Central Board of Direct Taxes (CBDT) has issued some amendments to the IT Rules on June 21. These amendments are regarding TDS return in Form 16QE and Form 16E. In the notification, CBDT has said that TDS deducted under section 194S will have to be deposited within 30 days. It will be necessary to deposit TDS within 30 days from the end of the month in which TDS will be deducted. This tax deducted as TDS will be issued in Form 26QE.
what is the new provision
Regarding this new provision, Nangia Andersen LLP Partner Neeraj Aggarwal tells ‘PTI’, for filling Form 26QE, you have to provide the date of transfer of virtual digital asset, value of VDA and payment mode of VDA. Whether the payment is in cash or exchanged with any other VDA, all these details will have to be given in Form 26QE. The provision of this form has been kept in section 194S of the IT Act.
According to this section, the details of transfer and payment related to VDA have to be mentioned in the form. Later, if any information is asked about such transactions, then documents will also have to be submitted for that. Therefore, the documents related to the transaction will have to be kept safe.
What do experts say
AKM Global Tax Partner Amit Maheshwari says that the details of the payment to be made in the transfer of VDA will have to be given in 26QE. The date on which the VDA transfer was made, what was the mode of payment, whether the VDA money was given in cash or in the exchange of cryptocurrencies, all these things have to be given. This provision has been kept in order to help the tax department to trace the transactions of cryptocurrencies.
On the other hand, it will also increase the responsibility of the taxpayer. The Finance Ministry is working on a FAQ on the taxation of cryptocurrencies to help taxpayers. The FAQ will reveal how much and how much will be taxed on which cryptocurrency or virtual digital asset.
new rule in budget
In the budget 2022-23, the rule of income tax on crypto assets was implemented. This rule has come into effect from April 1, in which income tax, cess and surcharge of 30 percent is being levied if there is profit in cryptocurrency transactions. Earlier, betting like lotteries or horse racing was also taxed. The same rule has been kept for cryptocurrencies or VDAs. If payment of more than Rs 10,000 is made in virtual currency, then from July 1, now 1% TDS will also be deducted.
A provision was also made in the budget that the threshold limit for TDS on crypto payments would be Rs 50,000 per year, but only for certain people. These special people will include such individuals or HUFs for whom audit of accounts is required under the IT Act.
Source: www.tv9hindi.com
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