Govt consider levying TDS/TCS on crypto trading

The government could consider in the forthcoming Budget levying TDS/TCS on sale and purchase of cryptocurrencies over a specific limit and such transaction should be brought within the ambit of specified transaction to purpose of reporting income tax authorities, Nangia Andersen LLP Tax Leader Aravind Srivatsan said.

Likewise, a higher tax rate of 30% should to be collected on the pay arising from the sale of cryptocurrency, like rewards from lottery, game shows, puzzle, and so on, he said.

Speaking PTI on what the Budget 2022-23, to be unveiled by the government on February 1, could have coming up for the crypto industry in India, Srivatsan said as of now, India has the largest number of crypto owners internationally, at 10.07 crore and according to a report it is expected that the investment by Indians in cryptocurrency could contact USD 241 million by 2030.

“A bill was expected to be introduced during Winter Session of Parliament to manage cryptocurrencies. Notwithstanding, it was not presented, and it is currently expected that the government might take up this bill in the Budget Session. In the event that the government doesn’t prohibit Indians from dealing in cryptocurrencies, we expect that the government could introduce a regressive tax regime for cryptocurrencies,” he noted.