And the difficulties of crypto investors increased, know what is the whole matter

The government believes that making PAN linking mandatory will help crypto investors meet KYC norms and better monitor such transactions.

Government may make PAN mandatory for crypto investors

The difficulties of crypto investors are not taking the name of stopping. The latest bad news for crypto investors is that Income Tax The department can make PAN ie permanent account number mandatory for them. This will be done on the lines of the rules related to demat account holders. It is important to note that linking of demat account with PAN is mandatory for transactions related to the share market. With PAN mandatory in crypto transactions, every type of transaction can be monitored.

Earlier, the government had announced a 30 per cent tax on profits from cryptocurrencies and NFTs. It also includes 1 percent TDS. This provision of tax on crypto earnings has come into force from April 1 this year. At this time, giving information about crypto holdings and its associated benefits is voluntary, that is, if you want to give, it is not mandatory.

To make PAN card linking mandatory for cryptocurrency investors, crypto exchanges will have to submit SFT i.e. Statement of Financial Transactions with the Income Tax Department. The government wants that the income from the business of cryptocurrencies should be reflected in the AIS ie annual information statement of the taxpayer while filing the income tax return. For this reason, the tax department may ask crypto exchanges to provide information about all transactions of their users.

The government believes that making PAN linking mandatory will help crypto investors meet KYC norms and better monitor such transactions. Along with this, any kind of tax evasion or money laundering attempt will also be detected. The details of crypto transactions were not visible in the ITR filing for the financial year 2022-23, but such information will be visible while filing ITR from the next assessment year.

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