The crypto industry has been urged by the government to reduce TDS to a target of 0.01 or 0.05 percent of the planned revenue, which it said would hurt retailers.
CoinDCX CEO and co-founder Summit Gupta says 30 percent of Crypto Currency is taxable and should be reduced.
“We are in contact with the government at the industry level. We have explained that 30% tax and more than 1 percent TDS is detrimental to the growth of the industry. Closing capital for traders.
Meanwhile, CoinDCX is participating in a forum with traders to comply with the new tax notes.
“At the end of the day, we will try to make it easier, but we can still participate and open the dialogue with the government and ask them to reduce the TDS (source tax) to 0.01 or 0.05 per cent.
Budget 2022-23 provides clarity on income tax on crypto assets.
Beginning April 1, 30 percent of income tax and surcharges will be penalized on horse racing or other speculative transactions.
Budget 2022-23 also recommends that 1% of TDS and gifts be paid to the recipient in the form of virtual currencies worth over Rs 10,000 per year. The TDS limit will be Rs 50,000 per year for these individuals, who are required to audit their HUFs under IT law.
The provisions of the 1 percent TDS will be effective July 1, 2022, and profits will be taxable from April 1.
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