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Hello friends, how are you all?? Wising you all happy and prosperous life ahead.
As January 2024 is going to be an end, as India will present it's interim budget in the parliament on February 1,2024. So would like to discuss on upcoming reports of TDS on crypto currency, as previous there has been huge stressed on crypto investment as crypto considered as money laundering, Fraud transactions, terrorism , drug Trafficking and illegal money activities.
Virtual Digital Assets (VDA's) such as Crypto currency and Non Fungible Tokens(NFT) are web3 encrypted tokens on Blockchains. As per the news Article "Global Crypto Adoption Index of 2023" suggested that India is currently Leading first on the "GrassRoot Adoption" in VDAs.
The country ranked first in four parameters including centralized service value received, retail centralised service value received, DeFi value received and Retail DeFi value received. Last year India stood fourth, based on the report.
Let's explain you what does Grassroots adoption means, it isn’t about which countries have the highest raw crypto currency transaction volumes, Instead, it’s the countries where average, everyday new people are loving crypto the most.
As we know there is 30% captial gain tax on profit withdrawal or any sale or transaction in crypto currency with no provision for reduced rates or deductions under the section of 115BBH, which is actually really irrespective to People income slab. In 2023 there was an article where Ministry of finance to imposed a 1% TDS (Tax deduction source) on buying and selling any type of VDAs as per Income-Tax,1961. But there has been several negative impact with VDAs investor in unofficial market for financial securities( Grey Market).
There is final report that Domestic exchange on when TDS will be deducted and deposited but there is still discussing about applicability of 1% TDS for international exchanges, let's wait for the postive results from the ministry of finance of India. If the ministry adopt the lowering of TDS on VDAs will bring great approach to become leading in blockchain and can have hard battle with the other Strong countries.
India's Presidency of G20 raised the hopes and aspirations for thr crypto currency Market, As India will revise their taxation previous report of crypto currency, which really gives hopes for crypto investors, as previously there was about to banned the crypto currency like the other countries but as of now there is no such circumstances anymore. Even G20 leaders also unanimously provide greater review to tax authorities with respect to transaction in VDAs.
As many of countries like US,U.K, Canada and many others have interestimg progressive Tax structure as these countries has no TDS on VDAs transaction.
Let us see the coming Budget 2024 of India, what will happen in it, there are positive results as G2O presidency meeting in India regarding Crypto norms and Act, hopefully tax has been reduced for cryptocurrency investors, TDS has also been reduced to support tracking of transactions.
What your opinion regarding TDS on VDA ?
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