CBDT to clarify position regarding crypto tax

The Central Board of Direct Taxes (CBDT) is preparing a list of FAQs (FAQs) related to the crypto tax system that came into force this year. Profits from crypto trading are taxed at 30 percent. Along with this, TDS of 1 percent will also have to be paid on every crypto transaction.

In a program organized by the Income Tax Department, CBDT chief Sangeeta Singh said that the answers to these questions will be released by the beginning of next month. Its aim crypto The situation regarding this tax has to be clarified for the people associated with the segment. CBDT is the apex body controlling tax related matters. “We are working on the FAQs to clarify the position on the crypto segment,” Singh said. Experts and firms related to the crypto industry have requested the central government to consider reducing the tax of 30 percent on profits from crypto.

Cryptocurrency trading allowed after tax for digital assets Volume has declined significantly. A recent report by research firm Crebaco claimed that crypto trading volumes of crypto exchanges in the country, including CoinDCX and WazirX, have dropped significantly. Crebaco had said, “Trading volumes for cryptocurrencies are falling. This could further decrease. The chances of it rising again are slim. It is clear that the new tax has negatively impacted the market. The government should consider this.” There is no way to stop crypto and because of this the government must embrace the technology.” However, there is confusion regarding the definition of virtual digital assets.

Taxes on crypto trading were announced in this year’s budget and since then the issue has become a cause of controversy among the crypto industry. Many industry experts and crypto enthusiasts have praised the government’s approach to regulating the segment rather than banning it, while others believe that the tax rate on crypto profits should be reduced. <!–

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