Saturday, July 2, 2022

Separate Column For Crypto in ITR From Next Year Revenue Secretary

ITR separate column for cryptocurrency: Presenting the budget on Tuesday, Finance Minister Nirmala Sitharaman had announced that now income from cryptocurrencies will be taxed at 30 percent. The government will levy 30 percent tax plus cess and surcharge on cryptocurrency transactions from April 1. Following this announcement, Revenue Secretary Tarun Bajaj has informed that next […]

ITR separate column for cryptocurrency: Presenting the budget on Tuesday, Finance Minister Nirmala Sitharaman had announced that now income from cryptocurrencies will be taxed at 30 percent. The government will levy 30 percent tax plus cess and surcharge on cryptocurrency transactions from April 1. Following this announcement, Revenue Secretary Tarun Bajaj has informed that next year the Income Tax Return Forum will have a separate column on benefits of cryptocurrencies and payment of taxes.

What did the Revenue Secretary say on Cryptocurrencies?

Talking to a news agency, the revenue secretary said that income above Rs 50 lakh will have to pay a surcharge of 30% plus applicable cess and 15% on cryptocurrency income.

He further added that from next year there will be a separate column for declaring profits from crypto in the income tax return form. He added that “Next year the ITR form will show a separate column for crypto. Yes, you have to state crypto-linked income.”

Revenue Secretary Tarun Bajaj said that ‘profits from cryptocurrency are always taxable and what has been proposed in the budget is nothing new, but provides certainty on the issue’.

Tax on digital assets

Revenue Secretary Tarun Bajaj further said, “The provision in the Finance Bill is a tax on digital assets. This tax is to bring cryptocurrencies under the tax net. It is not about its legal validity which is what the Bill ( on regulating such assets)

. Supported digital currency is going to come with digital currency from next financial year.

 

Why Tax on Cryptocurrency?

Now the statement of Central Board of Direct Taxes (CBDT) chairman J B Mohapatra on crypto currency or online digital assets regarding 30 percent tax on virtual assets has also come to the fore. He explained that the objective behind bringing cryptocurrencies under the tax net is to find out the ‘depth’ of digital currency trading, to know the investors and the nature of their investments.

 

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