30% TAX and 1% TDS applicable dates

[pakhitheboss]

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

[1715102751]

1715102751

[1715102751]

1715102751

[1715102751]

1715102751

[1715102751]

1715102751

[Aniruddha2425]

Tax start now 1 April 2022 but not any guidelines for that

[teosanru]

Tax start now 1 April 2022 but not any guidelines for that

What guidelines are you talking about? Government has already clarified the sections that it will be charged under and the method of calculation was also mentioned in the bill itself. You won't get any deduction except from cost of acquisition from the sale value. Only clarity which is left is on the TDS part that how will exchanges deduct TDS what will be the amount on which TDS will be deducted and after deducting so much TDS will it be even fruitful for government as eventually most of it will get refunded because tax is 30% on profit but tds is 1% on sale.

[UKprod]

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

All persons who make a gain on sale of crypto needs to pay taxes at 30% in their tax returns.

The TDS portion is probably applicable to the exchanges while paying out more than INR 10,000 in single payment or INR 50,000 in aggregate to the customer. So the exchange will deduct TDS on payment to customer and the customer can claim the credit of this 1% tax in the tax return.

[avikz]

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.

For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.

[pawanjain]

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.

For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.

So basically we just multiply the TDS by 30 to get the require amount of tax to be paid.
For example here 1000 rs is TDS and so 1000 x 30 = 30000 rs to be paid as tax.
But then I have a doubt. 30% tax is applicable on the transacted value or net income/profit.
I think it should be from the profit because if I am using 100000 to get a profit of 10000 then why would I pay 30000 as a tax.

[teosanru]

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.

For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.

No actually this isn't the case here, TDS would be deducted on the gross value which means on the sale value while tax has to be paid on sale value minus purchase price. So TDS deducted can only help you find the sales price not the income, just like what happens for many other businesses, so TDS would not help you keep track of exact income you'll still have to work on purchase prices.

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.

For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.

So basically we just multiply the TDS by 30 to get the require amount of tax to be paid.
For example here 1000 rs is TDS and so 1000 x 30 = 30000 rs to be paid as tax.
But then I have a doubt. 30% tax is applicable on the transacted value or net income/profit.
I think it should be from the profit because if I am using 100000 to get a profit of 10000 then why would I pay 30000 as a tax.

No no, this isn't true tax is to be paid at 30% on the profit from sale while TDS of 1% will be deducted on sale price. So a simple multiplication by 30 won't help. You'll have to keep proper calculations.

[pawanjain]

IS 1% TDS on purchasing crypto and transferring to non custodial wallet applicable? or TDS is only applicable when you sell.

As others have mentioned above, TDS is applicable when you are selling your coins on an exchange.
If you are holding any coins on a non-custodial wallet or transferring from one wallet to other then TDS won't be applicable on it.
We will get more clarity on it when the new rules are implemented.

[teosanru]

IS 1% TDS on purchasing crypto and transferring to non custodial wallet applicable? or TDS is only applicable when you sell.

Actually, if you go by the law, it states that the buyer will have to deduct a TDS of 1% on the sale proceeds from the cryptos if it exceeds a certain threshold limit, however practically speaking this is really difficult, because not all the buyers here are institutionalized and not all of them hold TAN no which is required to deduct any TDS and deposit it, and no one will get a TAN number merely to buy cryptos after deducting TDS, also if these people do transact without TDS, I doubt the government would ever be able to detect such cases on noncompliances because these transactions would take place without the use of banking systems.

[JSRAW]

 @UCK!!!

"The 🇮🇳 GST Council Is Likely To Levy 28% Tax on #Crypto Transactions."
https://twitter.com/bitinning/status/1523573434760187904

[wtfisbitx]

IS 1% TDS on purchasing crypto and transferring to non custodial wallet applicable? or TDS is only applicable when you sell.

Actually, if you go by the law, it states that the buyer will have to deduct a TDS of 1% on the sale proceeds from the cryptos if it exceeds a certain threshold limit, however practically speaking this is really difficult, because not all the buyers here are institutionalized and not all of them hold TAN no which is required to deduct any TDS and deposit it, and no one will get a TAN number merely to buy cryptos after deducting TDS, also if these people do transact without TDS, I doubt the government would ever be able to detect such cases on noncompliances because these transactions would take place without the use of banking systems.

They don't need to be able to trace all the transactions, they will just excessively punish the few who get caught and run this news on tv for a while : this should be enough to scare the shit out of most of the other P2P traders and accelerate the brain drain ever further.

@UCK!!!

"The 🇮🇳 GST Council Is Likely To Levy 28% Tax on #Crypto Transactions."
https://twitter.com/bitinning/status/1523573434760187904

Just in
💥BREAKING: India is considering a 75% flat tax followed by 100% TDS, 400% GST, 1 Kidney on a Profitable Trade and 1 Finger for Losing Trade, + Property if you own any and 100 Years of hard labour for 10 Generations of your Family [If you fall under the lower tax bracket]. 🤦‍♂️🤨

NK's ChimJongPun has called these new tax laws draconian and something that even NK would never introduce.

[teosanru]

@UCK!!!

"The 🇮🇳 GST Council Is Likely To Levy 28% Tax on #Crypto Transactions."
https://twitter.com/bitinning/status/1523573434760187904

I am sure the GST won't be on the purchase or sale amount, GST might be on the transaction fees that the exchanges are charging, 28% on buying cryptos from exchanges make zero sense, even if the law i brought to kill the market it must make sense in any law, charging GST on purchase or sale amount of any financial asset is idiotic, because eventually you will have to give ITC on such GST as well, and you will never be able to collect tax because people will eventually sell it and pay GST taking credit of the GST they paid on purchase, so I am sure there will never be a GST on the purchase/sale amount it can only be on transaction fees.

[JSRAW]

@UCK!!!

"The 🇮🇳 GST Council Is Likely To Levy 28% Tax on #Crypto Transactions."
https://twitter.com/bitinning/status/1523573434760187904

I am sure the GST won't be on the purchase or sale amount, GST might be on the transaction fees that the exchanges are charging, 28% on buying cryptos from exchanges make zero sense, even if the law i brought to kill the market it must make sense in any law, charging GST on purchase or sale amount of any financial asset is idiotic, because eventually you will have to give ITC on such GST as well, and you will never be able to collect tax because people will eventually sell it and pay GST taking credit of the GST they paid on purchase, so I am sure there will never be a GST on the purchase/sale amount it can only be on transaction fees.

If it comes into play then i won't cash out anything, i rarely cashout anything anyway but they are literally saying that they don't mind if you move out from the country.

Also representative from the Indian crypto community recently met with the government. After checking few articles it feels that Gov want them to come up with the solution of how to tackle the terror funding and due to this very reason they are not hearing anything else so anything is possible.

[teosanru]

@UCK!!!

"The 🇮🇳 GST Council Is Likely To Levy 28% Tax on #Crypto Transactions."
https://twitter.com/bitinning/status/1523573434760187904

I am sure the GST won't be on the purchase or sale amount, GST might be on the transaction fees that the exchanges are charging, 28% on buying cryptos from exchanges make zero sense, even if the law i brought to kill the market it must make sense in any law, charging GST on purchase or sale amount of any financial asset is idiotic, because eventually you will have to give ITC on such GST as well, and you will never be able to collect tax because people will eventually sell it and pay GST taking credit of the GST they paid on purchase, so I am sure there will never be a GST on the purchase/sale amount it can only be on transaction fees.

If it comes into play then i won't cash out anything, i rarely cashout anything anyway but they are literally saying that they don't mind if you move out from the country.

Also representative from the Indian crypto community recently met with the government. After checking few articles it feels that Gov want them to come up with the solution of how to tackle the terror funding and due to this very reason they are not hearing anything else so anything is possible.

There is only one way to stop terror funding, which is pretty easy, I don't know why government is reluctant to follow that, give licenses to crypto exchanges and reduce the tax rate on crypto transactions done through exchanges, either put a big chunk of tax on transactions done without proper KYC exchanges or just illegalize them or keep mandatory reporting requirement, now hunt down people doing this business in cash, just how you track them down currently. This system would allow crypto business to prosper, at the same time allow investors to invest with lesser tax and at the same time would bring down problem of terror funding a lot. I don't know why are they keeping such exhorbitant taxes on transactions made through exchanges, as this is ultimately motivating people to do transactions offline.

[JSRAW]

~snip~
There is only one way to stop terror funding, which is pretty easy, I don't know why government is reluctant to follow that, give licenses to crypto exchanges and reduce the tax rate on crypto transactions done through exchanges, either put a big chunk of tax on transactions done without proper KYC exchanges or just illegalize them or keep mandatory reporting requirement, now hunt down people doing this business in cash, just how you track them down currently. This system would allow crypto business to prosper, at the same time allow investors to invest with lesser tax and at the same time would bring down problem of terror funding a lot. I don't know why are they keeping such exhorbitant taxes on transactions made through exchanges, as this is ultimately motivating people to do transactions offline.

Fair enough but counter argument would be, if it's that easy then why Crypto leaders in India are reluctant to submit any proposal? That's what finance ministry keep asking them.

IMO I don't think there are any simple solution. Even Current Terror Monitoring Group is mixed bag and recently got to know that funding also coming through in disguise of "Zakat". 

[teosanru]

~snip~
There is only one way to stop terror funding, which is pretty easy, I don't know why government is reluctant to follow that, give licenses to crypto exchanges and reduce the tax rate on crypto transactions done through exchanges, either put a big chunk of tax on transactions done without proper KYC exchanges or just illegalize them or keep mandatory reporting requirement, now hunt down people doing this business in cash, just how you track them down currently. This system would allow crypto business to prosper, at the same time allow investors to invest with lesser tax and at the same time would bring down problem of terror funding a lot. I don't know why are they keeping such exhorbitant taxes on transactions made through exchanges, as this is ultimately motivating people to do transactions offline.

Fair enough but counter argument would be, if it's that easy then why Crypto leaders in India are reluctant to submit any proposal? That's what finance ministry keep asking them.

IMO I don't think there are any simple solution. Even Current Terror Monitoring Group is mixed bag and recently got to know that funding also coming through in disguise of "Zakat". 

The reason why they aren't bringing in a law is that it's India, there are already huge procedural delays in bringing any laws topped with that are regular elections, government obviously doesn't wants the backslash to effect their campaign.

Talking about terror funding it's a big separate issue in itself and more of a issue at global level, more than terror funding i am concerned with issues like red money and black money which could potentially increase with Cryptos but anyways not bringing a law isn't a solution as red money and black money are still roaming around without a proper law.

[JSRAW]

Hope there is no typo mistake there.  


https://search.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=https://incometaxindia.gov.in/Charts%20%20Tables/TDS%20Rates.htm&grp=&searchFilter=&k=tds&IsDlg=0


Edit

Damn it was indeed typo, they already made the changes on the document. Celebration lasted for full 30 minutes lol. Every poor soul is $ucked.  

[teosanru]

Hope there is no typo mistake there.  


https://search.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=https://incometaxindia.gov.in/Charts%20%20Tables/TDS%20Rates.htm&grp=&searchFilter=&k=tds&IsDlg=0


Edit

Damn it was indeed typo, they already made the changes on the document. Celebration lasted for full 30 minutes lol. Every poor soul is $ucked.  

Hahah for a second i was like wow man this is a really. Good news and then went on to see the tds schedule and then read your message. . Things would have been entirely different if it would have been 0.1% which ideally it should be. Because then it's not blocking that much capital of the fellow traders who are trying to trade. But I am thinking about the fellow exchanges who will now have to integrate TDS mechanism in their system and file regular returns with ITD for all such customer.