Budget 2022: Levy of 1% TDS on CryptoCurrency

Budget 2022: Levy of 1% TDS on CryptoCurrency It is suggested to add section 194S to the Act, which would allow for a one percent tax deduction on payments made for the transfer of a virtual digital asset to a resident. If, on the other hand, the payment for such a transfer is-

• entirely in kind or in exchange for another virtual digital asset, with no cash component; or
• partially in cash and partly in kind, but the cash portion is insufficient to satisfy the tax deduction responsibility for the entire transfer,

Budget 2022: New provision to allow Taxpayers to file an updated Income Tax Return Before making the payment, the person must ensure that the tax on the consideration has been paid. The provisions of sections 203A and 206AB will not apply to certain individuals. Furthermore, no tax is to be deducted if the payment is a specified person and the value of the consideration to a resident during the financial year is less than Rs. 50,000. In all other cases, the suggested ceiling for the financial year is Rs. 10,000. It is also proposed to stipulate that if tax has been deducted under section 194S, no tax will be collected or deducted under any other provision of Chapter XVII of the Act in relation to the same transaction. Proposed changes in TDS Regime as per Budget 2022: TDS Rate Chart applicable for Financial Year 2022-23 Furthermore, any sum paid for the transfer of a virtual digital asset that is credited to any account in the books of account of the person liable to pay such sum, whether called "Suspense Account" or by any other name, shall be deemed to be the credit of such sum to the account of the payee, and the provisions of section 194S shall apply accordingly.