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Tax on Crypto Assures a Major Income for Government of India

Published 12/14/2022, 11:25 PM
Updated 12/14/2022, 11:45 PM
Tax on Crypto Assures a Major Income for Government of India
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  • The Government of India has received an amount of 60.46 crores as TDS.
  • The amount has been revealed by the MoS Finance Pankaj Chaudhary in reply to Vivek K Tankha.
  • Since April 1% TDS had been collected from the transfer of virtual digital currencies over Rs. 10,000.

According to a statement submitted by Pankaj Chaudhary, the Minister of State for Finance, to the Rajya Sabha, the Government of India has received a total of 60.46 crores from Tax Deduction at Source (TDS) through the transfer of virtual digital assets (VDA).

Since April 1, the Government has drawn a 30% income tax surcharge and cess on the transfer of crypto coins like Bitcoin and Ethereum. In addition, under the 194S IT-Act, a 1% TDS had been introduced on payments in virtual digital currencies over Rs. 10,000.

While responding to a query by Vivek K Tankha of Congress, Chaudhary declared:

Post insertion of Section 194S in the Income-tax Act, 1961 through Finance Act, 2022, a total of 318 direct tax challans having TDS code 194S have been received having a total amount of INR 60.46 Cr.

As Tankha’s query was mainly focused on the legal position of the foreign exchanges that are authorized in India, and on their adherence to the 1% TDS norms, the losses, and strategies taken b ...

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