Crypto conundrum-LS passes the finance bill

By Shubhangi Dwivedi

The government has proposed taxing virtual currencies, according to the Finance Minister of India, because they are used for a lot of transactions. The bill also has 1% TDS on payments of virtual currency exceeding Rs. 10,000 per year, as well as taxes of such presents in the recipient’s hands.

Individuals who are required to have their accounts audited under the Income Tax Act will have a TDS threshold limit of Rs. 50,000 per year. From July 1, 2022, the provisions concerning 1% TDS will be in effect.

While presenting the bill, Nirmala Sitharaman also compared the position of other countries with India as to how India had not imposed any additional taxes apart from virtual assets taxes to satisfy the economic needs brought on by the COVID epidemic.