30% tax on cryptocurrency income to come into effect from today
Several income tax proposals, including 30 per cent tax on income from trade in cryptocurrencies will come into effect from Friday. Also, the revised norms for levy of 1 per cent TDS (tax deducted at source) on sale of immovable property exceeding Rs 50 lakh will come into effect from April 1, the beginning of the new financial year.
As per the revised norms, TDS of 1 per cent shall be deducted on consideration or stamp duty value, which ever is higher, as against the earlier provision of consideration.
Beginning next fiscal year, assessees will have the option to update their income tax returns in case there is any omission in original ITR. It would also provide opportunity to voluntarily disclose such income by filing an updated tax return with additional tax calculated based on the delay.
Taxpayers will be allowed to file such an updated return only once per financial year. From April 1, 2022, income from transfer of virtual digital assets or cryptocurrencies is taxable at 30 per cent. Such income will be taxable even if taxpayers’ total income is below the threshold limit of Rs 2.50 lakh.
Further, no deduction other than cost of acquisition is allowed while computing the taxable amount. From April 1, 2022, income from transfer of virtual digital assets or cryptocurrencies is taxable at 30 per cent. Such income will be taxable even if taxpayers’ total income is below the threshold limit of Rs 2.50 lakh.
Nangia Andersen LLP Partner Neeraj Agarwala said that disallowance of expenses under Section 14A would come into effect from April 1, 2022. From Friday, expenses incurred for earning exempt income will not be allowed as a deduction.
From Friday, expenses incurred for earning exempt income will not be allowed as a deduction.
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