The crypto industry wants the government to reduce TDS on transactions
New Delhi:
The crypto industry has urged the government to reduce the TDS on payment of profits from trading in cryptocurrencies to 0.01 or 0.05 percent from the proposed 1 percent, saying it would hurt retail traders.
CoinDCX CEO and co-founder Sumit Gupta said that the 30 percent tax on income from cryptocurrencies is high and should be reduced.
“At industry (level), we are engaging with the government and have made a presentation on how 30 per cent tax and above, 1 per cent TDS is detrimental to the growth of the industry. It will lock up capital for traders. And suck the liquidity out of the market. If there is no liquidity, retail investors will suffer,” Gupta told reporters.
Meanwhile, he added that CoinDCX is also working with traders on its platform to comply with the new tax rules.
“We will try to make it easier on our part but we will still continue to negotiate and continue to negotiate with the government to bring down TDS (tax deducted at source) to 0.01 or 0.05 per cent. Income tax of 30 per cent is high too. , which we are requesting to bring down,” Gupta said.
The Budget for 2022-23 has brought clarity regarding the imposition of income tax on crypto assets.
With effect from April 1, 30 per cent income-tax plus cess and surcharge will be levied on such transactions made in case of winnings from horse racing or other speculative transactions.
Budget 2022-23 also proposes 1 per cent TDS on payment of virtual currencies in excess of Rs 10,000 in a year and taxation on such gifts in the hands of the recipient. The TDS limit will be Rs 50,000 per annum for specified persons, including individuals/HUFs who are required to get their accounts audited under the IT Act.
The provisions relating to 1 per cent TDS will come into effect from July 1, 2022, while gains will be taxed with effect from April 1.