To implement these new provisions, the Central Board of Direct Taxes (CBDT) has notified some amendments in the Income-tax Rules for filing TDS returns in Form 26QE and Form 16E on June 21.
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TDS has to be deposited within 30 days
The CBDT has said that the TDS collected under section 194S will be credited within 30 days of the end of the month in which the deduction is made. The tax thus deducted will be credited to the 26QE invoice-cum-statement form.
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Things to keep in mind
Nangia Anderson LLP Partner Neeraj Agarwal said that in order to submit Form 26QE, an individual must state the date of transfer of virtual digital assets, value of thought, mode of thinking – in cash or goods or any other virtual digital asset.
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He said that these forms were in line with the recently introduced provisions of Section 194S. In order to comply with these sections, details must be disclosed in the form.
Decision to levy 30% capital gains tax
Under the new rules, cryptocurrencies are now taxed at 30%. Suppose you have invested Rs 15,000 in cryptocurrency and after a few years it has gone up to Rs 45,000. In such a case you will have to pay tax on the income earned on it i.e. Rs. 30,000. Also, from July 1, 1% TDS will have to be paid on crypto transactions. In addition, investors who do not sell cryptocurrencies for profit will also have to pay taxes.
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