Cryptocurrency traders in India will now be required to pay tax on their profits. In addition, while completing an income tax return, the entire account must be provided (ITR Filing). The government has mandated that bitcoin revenue be reported on the income tax return the following year. According to Revenue Secretary Tarun Bajaj, a distinct column in the income tax return form will be dedicated to crypto earnings.
Nirmala Sitharaman, Finance Minister on 1 February 2022Budget
It was declared in the (Budget 2022) address that crypto profits would be subject to a 30% tax. Aside from that, a 1% TDS will be applied to all transactions. This regulation will take effect on April 1, 2022. Not only that but on top of that, cess and surcharge will have to be paid on the 30% tax. Crypto income will be treated as a transaction, similar to winnings from horse races and lotteries.
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The use of black money will be regarded as a method of concealing gains.
Tax on Cryptocurrency, according to Revenue Secretary Bajaj, is levied on profits derived from cryptocurrencies. The budget does not include any additional taxes. On this topic, only the position has been clarified. He stated that the Finance Bill has a clause relating to the taxation of Virtual Digital Assets. It makes no mention of the legal status of cryptocurrency. Following Bajaj’s explanation, it is apparent that cryptocurrency gains cannot be concealed. If this profit is hidden, it is referred to as “black money.” The number of cryptocurrency investors in the country is steadily growing. Currently, there are roughly 15 million crypto investors in the country, according to estimates.
Cryptocurrency is not considered legal tender.
On Wednesday, Finance Secretary TV Somanathan made a big fuss about cryptocurrency. According to Somanathan, the world’s most popular cryptocurrency, bitcoin, Ethereum, or non-fungible token (NFT), will never be designated legal money. He stated that the crypto asset has not gained government sanction and that its pricing is determined privately. Somanathan, on the other hand, claims that the Reserve Bank’s digital money will never default. The RBI’s Digital Rupee will be accepted as legal tender.