The Central Board of Direct Taxes (CBDT) recently issued detailed guidelines on the tax deducted at source (TDS) rule for virtual digital assets (VDAs) such as cryptocurrencies. It lays out the various scenarios on how the tax will be applicable and who will bear the onus to deduct it.
What is the plan?
With the addition of Section 194S to the Income-tax Act via the Finance Act of 2022, a 1% TDS will be levied on transfers of VDAs beginning July 1 if the value of transactions exceeds Rs 10,000 in a year.
Guidelines issued –
About virtual digital assets –
How are virtual digital assets different from digital currency?