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IT Return to have a separate column for crpyto income
February 03, 2022
Income tax forms from the next year will have a separate column for making disclosures on profits made from the cryptocurrencies and paying taxes, Revenue secretary Tarun Bajaj said.
The government will from April 1 charge a 30% tax plus cess and subcharges, on such transactions in the same manner as they charge winnings from the horse races or other speculative transactions.
In an interview with PTI, Bajaj said profits from cryptocurrencies were always taxable and what the budget proposed is not a new tax but providing certainty over the issue.
“The provision in the Finance Bill is related to taxation of virtual digital assets. It is to bring certainty to the taxation of cryptocurrencies. It does not deliver anything on its legality which would come out once the bill is introduced in the parliament,” he said.
The government is working on legislation to regulate cryptocurrencies, but no draft has been released yet.
In the meanwhile, a central bank-backed digital currency will start circulating in the next financial year to usher in cheaper, more efficient currency management. The 30% cess plus applicable cesses and surcharge of 15% on income of more than 50 lakh will have to be paid on income from cryptocurrencies.
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