On Tuesday, the Indian government said that since the TDS rules were implemented in July, it has collected a total of Rs 60.46 crore in tax from companies for transactions using virtual digital assets (VDAs), such as cryptocurrencies.
As of April 1, the government imposed a 30% income tax, plus a surcharge and cess, on the exchange of cryptocurrencies such as Bitcoin, Ethereum, Tether, and Dogecoin. In addition, starting on July 1, payments of more than Rs 10,000 in virtual digital currencies are subject to a 1% Tax Deducted at Source (TDS) under section 194S of the I-T Act.
Minister of Finance Shared the News
Minister of State for Finance Pankaj Chaudhary stated in response to a question in the Rajya Sabha that CBDT runs outreach and awareness programs for deductors and taxpayers, as well as other measures like search and seizure operations, surveys, inquiries, etc., as necessary.
A total of 318 direct tax challans with TDS code 194S have been received, with a total sum of Rs 60.46 crore, after Section 194S was added to the Income-tax Act, 1961 by the Finance Act, 2022, Chaudhary said.
All parties involved in VDA-related transactions must adhere to the requirements of Section 194S, which was added to the Income-tax Act, 1961, by the Finance Act, 2022, for the deduction of tax at the source in respect of VDA transfers.
The minister continued by saying that crypto assets are currently uncontrolled and that the government does not register overseas crypto exchanges. He said that since cryptocurrency assets are, by definition, borderless, they need cooperation across countries to avoid regulatory arbitrage.