There will be a separate column for declaring income from crypto in the income tax return form

Budget 2022: The next time you invest in cryptocurrencies, you will have to disclose the income from cryptocurrencies and the tax paid thereon in your ITR form while filing your income tax return from the next year. From next year onwards, there will be a separate column in the ITR form to disclose income from cryptocurrencies in the ITR form.

Revenue Secretary Tarun Bajaj has given this information in an interview given to PTI. He said that from April 1, cess and surcharge will also be levied on income from cryptocurrencies along with 30 percent tax, just like income from lottery or horse race can be taxed. In fact, while presenting the budget, Finance Minister Nirmala Sitharaman has announced a tax of 30 percent on income from cryptocurrencies in the budget.

Tarun Bajaj said that income from cryptocurrencies was always taxable, but the proposal to impose 30 percent tax in the budget has brought clarity. A provision has been included in the Finance Bill regarding tax on digital currency. This is to bring certainty in the taxation of cryptocurrencies. It does not say anything on its legality as it will come out after the introduction of the cryptocurrency related bill. The government is working on legislation to regulate cryptocurrencies, but no draft has been publicly released yet.

Tarun Bajaj said that income above Rs 50 lakh from cryptocurrencies will have to pay 30 percent tax along with cess and 15 percent surcharge. And taxpayers have to disclose in ITR. He said that 30 per cent tax will also be levied on the profits of transactions of digital currency to be launched by RBI. TDS will also have to be paid on the transactions of cryptocurrencies so that its transactions can be tracked.

Budget 2022-23 also proposes payment of virtual currency in excess of Rs 10,000 in a year and 1 per cent TDS on the hands of the recipient. The TDS limit will be Rs 50,000 per annum for specified individuals, which includes such individuals/HUs who are required to get their accounts audited under the I-T Act. The provisions relating to 1 per cent TDS will be applicable from July 1, 2022, while the gains will be taxed with effect from April 1, 2022.

Further, no deduction in respect of any expenditure or allowance shall be allowed while computing income from transactions in such properties. It has also provided that loss arising out of transfer of virtual digital currency shall not be allowed to be set-off against any other income. Tarun Bajaj said that cryptocurrencies and virtual digital assets have no economic value, except for the underlying technology, no deduction is allowed.

also read

Budget 2022: Know why petrol and diesel can become expensive in some areas of the country after this announcement in the budget?

Budget 2022: The government expects a great boom in the stock market, the target of earning 60% more security transaction tax


Leave a Reply

Your email address will not be published. Required fields are marked *