Selling crypto at a profit will attract a tax of 30 percent, but TDS of one percent will be payable even if it is not sold at a profit.Â
This announcement was made by Finance Minister Nirmala Sitharaman in a recent meeting.
The purpose of the government was that it would know where crypto transactions have taken place. Explain that only the digital rupee proposed by RBI will be considered as a digital currency, the rest will be kept in the category of digital asset.
Along with this, it is also important to know that RBI’s proposed digital currency will be used only between two merchants or it can also be used for retail, RBI will decide on it.
It is noteworthy that several finance ministers had announced in their budget speech that RBI would launch a block chain based digital currency in the next financial year. RBI and Finance Ministry are working in perfect harmony on everything except crypto.
Shaktikanta Das says that like many other issues, this particular issue is under discussion internally between the RBI and the government.
RBI says investors investing in cryptocurrencies should invest at their own risk, cryptocurrencies have no inherent value. So you would like to know how the tax on crypto will be calculated.
Tax and investment analyst Balwant Jain said, there was no clear provision on cryptocurrencies before the budget, but after the provision on this in the budget, there will be a flat tax of 30 percent on earnings from crypto.
He said that if there is daily trading in crypto before March 31, if it is considered as a business asset then it will be considered as income or you can be treated as capital gain.
But if the provisions given in the budget do not change, then 30 percent tax will be levied after March 31 from the earnings on it.
