Govt gets ₹60.46 crore tax from TDS on virtual digital assets

Such assets include cryptocurrencies; the TDS provisions were introduced in July for transactions exceeding ₹10,000 for digital assets

Published - December 13, 2022 08:45 pm IST - New Delhi

The government on Tuesday said an amount of ₹60.46 crore had been received in tax from entities for transactions in virtual digital assets (VDAs), including cryptocurrencies, since the introduction of TDS provisions in July.

The government, from April 1, had brought in a 30% income tax plus surcharge and cess on transfer of crypto assets, like Bitcoin, Ethereum, Tether and Dogecoin.

Also, to keep a tab on the money trail, a 1% Tax Deducted at Source (TDS) under section 194S of I-T Act had been brought in on payments exceeding ₹10,000 towards virtual digital currencies from July 1.

In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said CBDT conducts outreach/ awareness programmes for deductors/taxpayers and also takes appropriate action, including search & seizure operations, surveys, enquiries etc, as required.

"Post insertion of Section 194S in the Income-tax Act, 1961 through Finance Act, 2022, a total of 318 direct tax challans having TDS code 194S have been received having total amount of Rs 60.46 crore," Mr. Chaudhary said.

Under the Income-tax Act, 1961, Section 194S has been inserted through the Finance Act, 2022 for deduction of tax at source in respect of transfer of VDAs which is to be complied with by any person engaged in transactions related to VDAs.

The Minister further said currently, crypto assets are unregulated in India and the government does not register foreign crypto exchanges.

"Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage," he said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.