The government is set to address the real problems and reservations of crypto-trading players arising from the new taxation regime for virtual digital assets, but it is firmly of the view to reduce the proposed 30% tax on profits from crypto assets. There is no economic argument. ‘ Trading.
While a review of 1% TDS (tax deducted at source) rate for all virtual asset trades may be considered, top officials of the finance ministry also pointed out that investments in equity and debt instruments on stock exchanges will also be beneficial for the economy. To create value, a securities transaction tax levy is involved.
Responding to industry apprehensions about tax rates, Revenue Secretary Tarun Bajaj took a tough stand Supported the 30% rate and said there is no reason to tax these properties less than what someone else paid on their income.
“Ultra-rich pay 42% tax including surcharge,” said Mr. Bajaj Hindu, “It is not that some economic value has been created or the GDP of the country is increasing (from crypto trading). If you are speculating and do not find it viable, then stop doing it,” he said to the government. There is no need to encourage such business even if it takes a fresh look at 1% TDS rate.
“We are looking at minor nuances,” said Mr. Bajaj, noting that the TDS levy is necessitated by the realization of tax authorities that collecting information on trades would be a challenge.
“That is why we are also saying that no set-off will be allowed, otherwise one can make capital gains on equity and show loss in your personal wallet to wallet transactions here,” he said. “TDS will be deducted and if any exchange does not do so, the provisions will be applicable to them. So now the responsibility and accountability falls on them.”
JB Mohapatra, chairman of the Central Board of Direct Taxes, said, “If there is any objection on which we agree, that the law needs to be straightened out, of course, we will work on that.” “But the fact remains that the Digital Virtual Asset Tax has been brought in to help the larger ecosystem to remain unaffected by the perceived ambiguity of that segment,” he underlined.
“You should not take any message about the regulatory regime from this tax. As long as the regulatory regime is in place, from the tax point of view, we are not concerned whether you can do derivatives or intraday trading on it,” said the revenue secretary.
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