Government Clarifies 1% TDS Rule for Transfer of Crypto Asset
Cryptocurrency investors in India are going to face another setback as from July 1 government clarifies 1% TDS on crypto-assets transfers. Investors of cryptocurrencies will have to pay 1% TDS on every transaction, whether sold for profit or loss, with effect from July 1, 2022.
Since then, the enthusiasm among those investing in cryptocurrencies has been decreasing. This may come down further after the TDS is levied. The government has not given recognition to cryptocurrencies but it has been decided to levy a 30% capital gains tax on cryptocurrencies income from 2022-23 this year.
Investors who do not sell cryptocurrencies for profit will also have to pay taxes. People investing in such cryptos will have to pay 1% TDS so that the government can trace the exact locations of those transacting in cryptocurrencies. Selling crypto at a profit will attract a tax of 30%.