The Indian government plans to issue a set of guidelines by July 1 for effective tax management of virtual digital assets (VDAs), after making some changes to the scope and definition of virtual digital assets (VDAs).
Media reports say the Central Board of Direct Taxes (CBDT) has been asked to prepare the guidance. According to sources, the government is unlikely to reduce the 1 percent tax deduction at source (TDS) that applies to nearly all digital asset transfers. It believes the TDS will help track and trace people who may be profitable in cryptocurrency trading but are reluctant to show it on their income tax returns.
Some industry representatives, including CoinSwtich Kuber CEO Sumit Gupta, have asked the government to lower the TDS to a range of 0.01% to 0.05%.
It is also unlikely that the 30% capital gains tax imposed on crypto trading profits, including NFTs, through the 2022-23 Union Budget will be reduced.
The Treasury Department does not intend to provide exemptions, with some exceptions that may include hospitals using blockchain technology.
