Budget 2023 Crypto Tax: Last year the government had taken a big decision to impose TDS on Cryptocurrency transactions and this time the demand for reducing TDS is rising in the budget. But after all, how is TDS calculated on crypto, let us understand.
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Budget 2023: last year the government Cryptocurrency 1 percent TDS was implemented on the transaction due to which there is a decline in the trading volume under the cryptocurrency exchange. Now this year the government is being demanded to reduce TDS in the budget. But after all, how is the TDS calculated by the government on cryptocurrency, everyone wants to know the answer to this question. In such a situation, today we are going to give you detailed information about this matter.
Understand how TDS is deducted on cryptocurrency?
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This is how tax is calculated while dealing in INR
Let us explain to you in easy language how TDS is calculated. If a person puts the price of 1 BTC (Bitcoin) at Rs 100, then after deducting TDS, the person selling crypto will get Rs 99 in his hands. This is the matter of the seller of crypto, on the other hand no TDS will be applicable on the person who buys bitcoin. But if someone transacts in Indian currency, then in such a situation, TDS is applicable only on the person selling crypto, not on the buyer.
How is TDS calculated in Crypto-Crypto market?
If a person sells 1 bitcoin for 10 ethereum, then the person selling bitcoin will get 10ETH (ethereum) only if the person pays 1.01BTC (after 1 percent TDS). At the same time, the person buying bitcoin will get 0.99 BTC (Bitcoin) after deducting 1 percent TDS. Explain that if anyone sells crypto in crypto itself, then in such a situation TDS will be applicable on both the parties.
Under which section TDS is deducted?
According to CBDT i.e. Central Board of Direct Taxes, TDS will be deducted under section 194S if any person buys this crypto. From July 1 last year, TDS works on transactions above Rs 10,000. This means that if any Indian sells his Ethereum, Bitcoin, BNB, Tether, Solana, Shibu Inu or Dogecoin etc. crypto, then he will get 1 percent of the amount demanded on crypto.