Mitali
Quick Summary
Virtual Digital Assets (VDAs) including Cryptocurrencies and NFTs, have been categorized as undisclosed income. But, VDA does not include: Indian or Foreign Currency. Gift cards, reward points, milage points. Subscription to websites or platforms. Any asset notified to be excluded b
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
FAQ :
VDAs include cryptocurrencies and NFTs. They do not include Indian or Foreign Currency, gift cards, reward points, mileage points, or subscription access to platforms, unless specifically notified by the Government.
The income from cryptocurrency transactions is taxed at a flat rate of 30% on profits, plus applicable surcharge and cess, for transactions from April 1, 2022, onwards. No slab benefits or deductions are allowed, except for the cost of acquisition.
Yes, a 1% TDS is mandated on VDA transaction payments under section 194S. For P2P and international trades, the buyer must deduct and deposit the TDS. For crypto-to-crypto trades, both buyer and seller must pay 1% TDS.
No, losses from one VDA cannot be set off against gains from another VDA or any other source of income. Similarly, VDA losses cannot be carried forward.
Crypto airdrops and mining rewards are taxed at your individual income tax slab rate based on their fair market value when received. If you later sell these assets for a profit, a 30% tax will apply to that gain.
If unreported crypto gains are detected, tax authorities can impose a 60% tax along with a 50% penalty on the tax amount.
CAclubindia
