Cryptocurrencies have also come under the tax net from today and will be taxed at 30 percent from Friday. Actually, the new financial year has started from April 1. Along with this, tax will have to be paid on the income from transactions of cryptocurrencies from today.
Cryptocurrencies have also come under the tax net from today and will be taxed at 30 percent from Friday. Actually, the new financial year has started from April 1. Along with this, tax will have to be paid on the income from transactions of cryptocurrencies from today. The tax burden on those who have invested in crypto will increase with the new financial year.
Let us inform that during the Budget 2022, Union Finance Minister Nirmala Sitharaman had announced to levy tax up to 30 percent on earnings from cryptocurrencies or NFTs or other crypto assets.
On this announcement, Central Board of Direct Taxes (CBDT) Chairman J B Mohapatra had said that the announcement of bringing crypto currency or online digital assets in the tax net in the budget will help the Income Tax Department to know the ‘
depth’ of business of this currency in the country. It will be helpful to know the investment, investors and the nature of their investment. This move does not mean that transactions in cryptocurrencies will become legal.
Option to amend income tax return
Apart from tax on earnings from cryptocurrencies, many income tax proposals will also be implemented from today. The revised guidelines for levying one percent TDS (tax deducted at source) on sale of immovable property above Rs 50 lakh will also come into effect from April 1. As per the amended rules, TDS of one per cent will be deducted on the return or stamp duty value, whichever is higher.
Income tax payers will have the option to amend their income tax returns in case of any default in the original ITR from the beginning of the next financial year. Taxpayers will be allowed to file such revised return only once in every financial year.
Apart from this, income from transactions of virtual digital assets or cryptocurrencies will be taxed at 30 percent with effect from April 1, 2022. This income will be taxed even if the total income of the taxpayers is less than the limit of Rs 2.50 lakh.
Nangia Andersen LLP Partner Neeraj Aggarwal said that the inclusion of expenses under section 14A will not be allowed from April 1, 2022. No deduction will be allowed on expenditure incurred for earning exempted income.
