Want To Save 30 Per Cent Tax On Cryptocurrency Income? Know How Here

Crypto News India: The 30 per cent tax will not be applicable in the current financial year i.e year ending March 31, 2022. The TDS will be applicable from July 2022.

New Delhi: Budget 2022 came as a surprise for digital asset holders. Finance Minister Nirmala Sitharaman in her Budget Speech said, “There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent.”

This clause of 30 per cent, came along with a 1 per cent TDS on the value of the transaction to track the transaction. FM Sitharaman further said, “Further, in order to capture the transaction details, I also propose to provide for TDS on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.”

How To Save The 30 Per Cent Tax?

According to a report by Financial Express, the 30 per cent tax will not be applicable in the current financial year i.e year ending March 31, 2022. So, if you sell your holdings before March 31, 2022, the income from their sale should not be taxable.

According to Revenue Secretary Tarun Bajaj, “For transactions before April 1, you will show in some head in your ITR and the Assessing Officer will do an assessment for you.” The individuals can place the income from crypto under any head in ITR.

It is up to the AO to do the required assessment. The tax may not be 0 per cent on the income, but it will also not be 30 per cent. This step can be more beneficial to small investors. Also, from July 2022, the 1 per cent TDS rule will also be applicable, the report stated.