What is the new TDS law on cryptocurrency in India?

What is the new TDS law on cryptocurrency in India

Today we are once again present with information about cryptocurrency, in this episode we will tell you today how much TDS is charged on crypto in India and in which condition we will give you all the information below,

The Central Board of Direct Taxes (Tex) on Cryptocurrencies in India has taken an important decision. A long-awaited new Act has been enacted in which a 1% TDS will be levied on transactions in all virtual assets according to Section 194S. Which will be effective from July 1.

As per Section 194S of the Virtual Property Act, TDS will be deducted only by the cryptocurrency exchange. The function of the exchange itself is to transact cryptocurrencies.

In cases where the transaction of cryptocurrency is done through a broker. There, as per Section 194S of the Cryptocurrency Act, the responsibility of collecting tax will lie on both the exchanges and the broker.

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When a crypto investor sends crypto currency to another investor and another investor also sends crypto currency to him in return, both will have to pay 1% TDS. Because in such a situation both the investors will be sellers and both will be buyers. As per Section 194 of the Cryptocurrency Act, the report has to be submitted in Form No. 26 QU.

Payment gateway is not required to deduct tax as per Section 194S of the Cryptocurrency Act. Because he can deduct tax twice

One percent TDS will be levied on cryptocurrency of value more than ₹ 10000, but for some special people, this value will be more than ₹ 50000.

TDS will be levied on all cryptocurrencies received from mining or cryptocurrencies obtained through stacking or cryptocurrencies given in gifts.

 

What is the new TDS law on cryptocurrency in India