Breakdown of all components of #cryptocurrency #tax in #Budget2022 🧵
4 major provisions proposed, effective at different points in time:
1. New Income Tax scheme 115BBH
2. New TDS clause 194S
3. Gifting of #crypto taxed as property
4. Sweeping definitions of crypto assets
4 major provisions proposed, effective at different points in time:
1. New Income Tax scheme 115BBH
2. New TDS clause 194S
3. Gifting of #crypto taxed as property
4. Sweeping definitions of crypto assets
Income Tax:
New Scheme 115BBH (effective 1 April 2023)
Any income generated from transfer of any virtual asset will be taxed at 30%. There will be no deductions or offsets allowed. There will be no carry forward of losses into subsequent assessment years.
New Scheme 115BBH (effective 1 April 2023)
Any income generated from transfer of any virtual asset will be taxed at 30%. There will be no deductions or offsets allowed. There will be no carry forward of losses into subsequent assessment years.
TDS:
New clause 194S (effective 1 July 2022)
Levy of 1% TDS on all transactions with a clear intent to tax more or "widen the tax base".
New clause 194S (effective 1 July 2022)
Levy of 1% TDS on all transactions with a clear intent to tax more or "widen the tax base".
Gifting:
Amendment of explanation in clause (x) of sub-section(2) of section 56(effective 1 April 2023)
“Property” will now include virtual digital assets. If any #crypto income is shown as gifting rather than income, that will also be taxed.
Amendment of explanation in clause (x) of sub-section(2) of section 56(effective 1 April 2023)
“Property” will now include virtual digital assets. If any #crypto income is shown as gifting rather than income, that will also be taxed.
Definitions:
New Clause 47A in Sec 2 of Income Tax Act (effective 1 April 2022)
Sweeping definition of crypto assets to encapsulate fungible, non fungible and "any other token of similar nature"
New Clause 47A in Sec 2 of Income Tax Act (effective 1 April 2022)
Sweeping definition of crypto assets to encapsulate fungible, non fungible and "any other token of similar nature"
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