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These 4 types of taxes may be levied on buying and selling cryptocurrency, the government will announce something new in the budget!

Up to 30 percent tax can be charged on the income earned from selling bitcoins. The government can bring rules related to this in the budget session. Tax experts believe that buying and selling of cryptocurrencies can be brought under the purview of TDS or TCS.

tax on bitcoin sell and purchase

Cryptocurrency in India (cryptocurrencyBillions of rupees have been invested in Despite not getting permission from the government, people of India are increasing investment in cryptocurrency day by day. According to an estimate, by the year 2030, more than $241 million will be invested in cryptocurrency in India (investment in cryptocurrency) Maybe. India currently has the largest number of cryptocurrency investors in the world. Especially youth bitcoin (Bitcoin) is investing money on a large scale in cryptocurrency. According to a report by Nasscom and WazirX, India has the largest number of 1007 million investors in the world.

There is such a large number of investors in India when it has not been legalized. It was believed that the government would bring a bill related to bitcoin or cryptocurrency in the winter session of Parliament. But this did not happen and till now there is confusion on the investment of bitcoin. It is believed that a bill related to cryptocurrency may come in the budget session. Taxmann’s DGM Naveen Wadhwa tells ‘Financial Express’, if the government does not stop people from using cryptocurrency, then it is possible that strict tax rules should be imposed against cryptocurrency.

In view of the earnings from cryptocurrency, there is a discussion of 4 types of tax which the government can implement. This tax will have to be paid on the purchase and sale of cryptocurrency.

1-TDS or TCS rule

Tax experts believe that the act of buying or selling cryptocurrency more than a limit will be brought under the provision of TDS or TCS. With this, the government will get complete information about the investors along with earning. It will also be able to know how much cryptocurrency business is going on in the system.

2-Cryptocurrencies will be recorded in financial transactions

It is believed that there will be a rule to report the purchase and sale of cryptocurrency in the ‘Statement of Financial Transaction’ or SFT. Cryptocurrency related companies will make such reports in SFT. Till now trading companies report the purchase and sale of shares and mutual funds in SFT.

3- Preparing to impose more tax

Just as the government levies more tax on lotteries, game shows and puzzles, in the same way up to 30 percent tax can be levied on cryptocurrencies. The government can impose a tax of up to 30 percent on the earnings from the sale of cryptocurrency.

4-Cannot bridge the deficit

If there is a loss on selling bitcoin or any other cryptocurrency, then it cannot be compensated by any other earnings. The government cannot allow losses to be ‘carry forward’ or set off in earnings from cryptocurrencies. This will be known only in the budget session.

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