Government collects Rs 60.46 crore in TDS from digital assets, cryptocurrency transactions

14 Dec 2022 , 11:27 AM

Since the introduction of TDS provisions in July, the government said on Tuesday that it has collected a total of Rs 60.46 crore in tax from companies for transactions in virtual digital assets (VDAs), including cryptocurrencies.

For transfers of cryptocurrencies like Bitcoin, Ethereum, Tether, and Dogecoin, the government has instituted a 30% income tax plus a fee and acess. A 1% Tax Deducted at Source (TDS) under section 194S of the I-T Act was implemented on payments exceeding Rs 10,000 made toward virtual digital currencies beginning July 1 to track the money trail.

Through the Finance Act of 2022, Section 194S for the deduction of tax at source in respect of the transfer of VDAs was added to the Income-tax Act of 1961 and must be followed by anybody engaging in transactions involving VDAs.

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