Who knew that the advent of pandemic would unleash a blitzkrieg putting Virtual Digital Assets (VDAs) in prominence as never before. As other investment options fell out of favour, investors found haven in Cryptocurrency and other VDAs driving the market. Cryptocurrency or Crypto has been around for long enough that several countries have developed regulations to cater to the ever-growing thirst of investors looking for investment avenues. Inconsistency in the tax position around Crypto have been a cause of concern for Crypto operations in India from the very incipient stage which has been exacerbated by the new VDA tax regime introduced by the Union Budget 2022. Ever since, unlike a fairytale, the Crypto industry seems to be facing a hard landing.
For a deeper insight, Taxsutra presents a Special Series “Crypto Taxation – Impact Assessment & Corrective Measures” with inputs from Esya Centre’s Report - Virtual Digital Asset Tax Architecture in India: A Critical Examination.
Bharat Web3 Association (BWA), an Industry body of companies working on non-Fungible token (NFTs), Infrastructure Providers, Virtual Digital Assets (VDAs), Token Projects, etc. submits suggestions to the Finance Ministry for substantially diluting and the VDA tax regime and treating it at par with other incomes
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Rajasthan HC dismisses writ petition challenging reassessment proceedings and refuses to interfere with the order under Section 148A(d) by finding no perversity or lack of jurisdiction therein; Opines that the issue of whether the amount in question of Rs.4.65 Cr reflects the volume of the trade or the total investment made in the crypto currency would essentially be a matter for consideration upon perusal of the crypto currency ledger, thus grants liberty to the Assessee to submit appropriate documentary evidence including the crypto currency ledger; Assessee-Individual, was subject to reassessment proceedings, for AY 2018-19, on the basis of the credible information received from DIT (Systems) through insight portal revealing that the Assessee made investment in crypto currency of Rs.4.65 Cr the source of which was not verified and reflected in the return of income filed by the Assessee.....
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CBDT issues Circular No. 13/2022 dt. Jun 22, 2022, laying down Guidelines for removing difficulties in implementation of Section 194S i.e. TDS on payment for transfer of virtual digital assets
Mr. Pankaj Chaudhary, Minister of State for Finance responds to questions on taxation of cryptocurrency raised by Mr. Karti P. Chidambaram, MP; MoS clarifies that no deduction of any expenditure or allowance, apart from cost of acquisition, will be allowed while computing the income from transfer of virtual digital assets as per the provisions of Finance Bill, 2022....
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