We thought you might be interested in reading about the relief for crypto exchanges following the announcement that the 1% TDS is set to be applicable starting next month. The move comes at a time when the crypto industry is facing dwindling transaction volumes.
As of late evening on June 8th 2022, the Income Tax Department has reduced the rate from 1% to 0.1%. This is absolutely fantastic news for the crypto community, and will definitely have an impact on the investors, won’t it? Absolutely yes! But as it turns out it was only a short lived fantasy.
Here’s the Glooming Truth About It
Many crypto aficionados have criticised the move, which is considered as a huge barrier for individuals active in crypto trading. The government has been talking about their decision for months now, but this is their final step.
The Budget 2022 suggested a 1% TDS on payments towards virtual currencies exceeding Rs 10,000 per year, with a TDS threshold of Rs 50,000 per year for selected people. This provision was planned to go into effect on July 1, 2022. The TDS was reduced shortly before the deadline, according to the IT portal.
Read About: Crypto Taxation in India
The government has overturned its decision to impose TDS on crypto assets, and the tax remains at 1%. The website had previously mentioned 0.1 percent in typo error, which was corrected in the revised version of the page.
As of now, it is not clear whether this was a genuine error on the Income Tax website, or whether they were intentionally left there. But what is clear is that this story has gone viral online. Many social media platforms have shared short lived relief and we believe that many might have started planning their new investment strategy on the basis of this breaking news.
It even caught the attention of some journalists and other media houses who wrote about it in India and abroad. The official stand of the government, safe to say, still remains unchanged with 1% TDS applicable from July 1st 2022.