Cryptocurrency Latest Update: Those investing money in cryptocurrency may now have to pay 28 percent GST. A decision in this regard can be taken in the next meeting of the GST Council. Earlier, Finance Minister Nirmala Sitharaman had talked about imposing 30 percent income tax on crypto income.
Cryptocurrency Latest Update: If you or any of your friends/relatives have invested money in cryptocurrencies like bitcoin or ethereum, then this news is for you. Yes, after the announcement of imposing 30 percent tax on cryptocurrency in Budget 2022, now its investors may get another setback from the government.
30 percent income tax said in the budget
In the Budget 2022, Finance Minister Nirmala Sitharaman had talked about imposing 30 percent tax on income from cryptocurrency. Now it is being considered to impose 28 percent Goods and Services Tax (GST on Cryptocurrency) on crypto. According to media reports, 28 percent tax can be imposed on cryptocurrency transactions in the next meeting of the GST Council.
Government preparing to categorize
Actually, the government is preparing to categorize digital currency as lottery, casino, race course and gambling. However, the date of the meeting of the GST Council has not been decided yet. A new section 115BBH has also been added to the Income Tax Act to levy tax on virtual digital assets.
The idea of deducting 1 percent TDS also
The Finance Minister had also said that taxing cryptocurrency does not mean that it has been legalized in the country. Now it is expected that in addition to 28 percent GST on cryptocurrencies, 30 percent income tax will be separately. Apart from this, there is also an idea to deduct 1 percent TDS on transactions exceeding the fixed limit. If you gift cryptocurrency to a friend or relative, then that will also be taxed.
Earlier in April, Finance Minister Nirmala Sitharaman, who visited the US, had said that the acceptance of cryptocurrencies is increasing rapidly across the world. In such a situation, it needs global regulation. Money laundering of any kind can be prevented through this. The Finance Minister had also raised the issue that funding of terrorists is being done through cryptocurrency, it needs to be stopped at the earliest.