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Rajkotupdates.news: government may consider levying tds tcs on cryptocurrency trading

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rajkotupdates.news : the government may consider levying tds tcs on cryptocurrency trading:

In the upcoming budget, the government is reportedly considering the possibility of levying TDS/TCS on the sale and purchase of cryptocurrencies above a certain limit. According to Arvind Srivatsan, a leader and partner at Nangia Andersen LLP, the move will include such transactions under the specified transactions section for income tax reporting purposes.

Furthermore, Srivatsan has recommended that a higher tax rate of 30 percent should be imposed on income generated from the sale of cryptocurrencies, which is applicable to winnings earned from game shows, lotteries, puzzles and the like. This suggestion was given in an interview with PTI.

Why TDS and TCS on Cryptocurrency Trading

rajkotupdates.news : government may consider levying tds tcs on cryptocurrency trading

To deal with the above concerns, the Government of India is reportedly considering the idea of levying TDS and TCS on cryptocurrency trading. TDS stands for tax deducted at source of income, while TCS refers to tax collected at the source of income. Through the imposition of TDS and TCS on cryptocurrency trading, the government seeks to guarantee that taxes are properly paid on income derived from such transactions, besides helping to trace cryptocurrency transactions and unearth any illegal activities.

Crypto regulation bill expected to roll out in upcoming Budget Session

According to sources, the said remarks of the market expert come amid the preparations for the “Regulation of Cryptocurrency and Official Digital Currency Bill” to be introduced in the upcoming budget session of the Parliament, starting January 31, 2022,

Future of Digital Currency

The government’s recent proposal to levy TDS and TCS on cryptocurrency trading may indicate a move towards accepting them as a valid form of currency. Nonetheless, it remains uncertain how the government intends to regulate cryptocurrency exchanges and trading in the coming times. Additionally, there is a possibility that the government may consider introducing its own digital currency at some point in the future.

What are the legal and constitutional issues associated with levying TDS/TCS on cryptocurrency trading?

The Indian government’s proposal to tax cryptocurrency trading is a step towards promoting better regulation and raising revenue. The move, however, may raise legal and constitutional questions. Taxation remains an essential element of regulating transactions involving digital assets such as cryptocurrency. Responsible development of digital assets is critical to protecting consumers, investors, and businesses from risks related to price volatility, misinformation, fraud, theft, and asset loss.

International cooperation is also essential to address issues surrounding digital assets, ensuring consistent and effective regulation, supervision, and enforcement of anti-money laundering (AML) and counter-terrorist financing (CFT) practices across jurisdictions. Government oversight would promote transparency and encourage greater cooperation between government agencies in enforcing existing laws, especially those related to money laundering or illegal activities.

Taxing cryptocurrency trading would provide additional revenue to the government and enable funding of development projects, which is especially important in countries with struggling economies. However, legal and constitutional concerns must be resolved to ensure the fairness and validity of the measure. These include constitutional guarantees against government confiscation of illegal funds without due process, as well as increasing the cost of doing business for traders and discouraging investment in the crypto market.

Conclusion

The implementation of taxes such as TDS and TCS in cryptocurrency trading can have a positive impact on the development of the digital asset landscape in India. A well-designed regulatory framework, technological innovation and market adoption will play a significant role in shaping the future of the industry. By creating a financially stable and supportive environment for the development of cryptocurrencies, India can foster sustainable growth. We hope this clarifies any doubts related to the article on RajkotUpdates.news, regarding the possible idea of Government of India to impose TDS and TCS on Cryptocurrency trading.

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Aman

My name is Aman, I am a Professional Blogger and I have 8 years of Experience in Education, Sports, Technology, Lifestyle, Mythology, Games & SEO.

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