ICAI to Prepare Research Paper on Cryptocurrencies

The Institute of Chartered Accountants of India (ICAI), the apex body of chartered accountants, will be preparing a research paper on cryptocurrencies that will cover a variety of topics, including tax implications. ICAI President Debashis Mitra announced on Tuesday that the institute is working on a research paper on cryptocurrencies that will be ready in one and a half months.

Currently, cryptocurrencies in the country are unregulated.

President Debashis Mitra stated that the research paper will be submitted to the government once it is completed.

When asked about cryptocurrencies, Mitra told reporters here, “We are seized of the matter.”

The Union Budget 2022-23 clarified the imposition of income tax on crypto assets. From April 1, such transactions will be subject to a 30% I-T plus cess and surcharges, in the same way that winnings from horse races or other speculative transactions are.

Furthermore, the budget proposed a 1% TDS on virtual currency payments exceeding Rs 10,000 per year, as well as taxation of such gifts in the hands of the recipient.

The TDS threshold limit would be Rs 50,000 per year for specified persons, which would include individuals and HUFs required to have their accounts audited under the I-T Act.