TDS from online gaming crypto trade: Following the implementation of a new TDS regime for online gaming and cryptocurrency trading, the government has so far this quarter received over Rs 700 crore in taxes, according to CBDT Chairperson Nitin Gupta’s statement.
With effect from April 1, 2023, the Finance Act 2023 added a new section 194BA to the Income Tax Act, 1961, requiring online gambling platforms to deduct income-tax (TDS) from users’ net earnings in their user accounts.
When making a withdrawal and at the conclusion of the fiscal year, taxes must be subtracted.
On April 1, 2022, income derived from the transfer of cryptocurrencies or virtual digital assets will also be subject to a 30% tax. The aforementioned income is subject to taxation, even in cases where the taxpayer’s overall income falls below the Rs 2.50 lakh level. The only allowable deduction in determining the taxable amount is the acquisition cost.
Read more : Crypto loss cannot be set off against another crypto gain; govt. clarifies
The Union Finance Minister, Nirmala Sitharaman, suggested in her budget address for 2022–2023 to impose a one percent tax on transfers of virtual digital assets, based on the amount of “such consideration above a monetary threshold.”
Despite India’s stance on cryptocurrencies, which has been that any legislation regulating or outlawing them may only take effect following extensive international cooperation on the assessment of the advantages and disadvantages, the tax was implemented.
Read more: Cryptocurrency: After Income tax, now GST on crypto transactions
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