Everything is going to change from July 1st..Crypto TDS ..Penalty..Important Notification by Central Govt!!

The central government has brought many changes like TDS on cryptocurrency, new credit card rules, double penalty for linking PAN-Aadhaar, change in small savings rates, effective today.

In it, the government has announced several financial changes coming to individuals and taxpayers including how to file crypto TDS tax and 5 steps to do so.

Here’s a look at the major crypto tax changes coming next month.

TDS on Cryptocurrency Tax and Limitations (TDS on Cryptocurrency, VDA):

The Center for Taxes on June 22 issued a circular detailing the tax exemption process for virtual digital assets (VDA) and exchanges of cryptocurrencies from July 1, 2022, as announced in this year’s Union Budget.

Now the buyer of VDA i.e. virtual digital assets has to deduct TDS. 1 percent of the amount paid as income tax to the seller is deducted as TDS.

Tax shall be deducted on such amount on credit or payment to resident person on which it is paid in advance.

Moreover, the CBDT has clarified that only the amount paid above the specified threshold of Rs 10,000 will be tax deductible. It also specified that the limit for TDS would be Rs.50,000 per annum for certain individuals.

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