Quote from: avikz on May 03, 2022, 03:31:29 PM

Quote from: pakhitheboss on March 20, 2022, 06:06:50 AM

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.

For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.

No actually this isn't the case here, TDS would be deducted on the gross value which means on the sale value while tax has to be paid on sale value minus purchase price. So TDS deducted can only help you find the sales price not the income, just like what happens for many other businesses, so TDS would not help you keep track of exact income you'll still have to work on purchase prices.

Quote from: pawanjain on Today at 03:47:38 PM

Quote from: avikz on May 03, 2022, 03:31:29 PM

Quote from: pakhitheboss on March 20, 2022, 06:06:50 AM

Starting 1st of April 30% tax on income from crypto and other virtual assets will come into effect and 1% TDS will come into effect from 1st of July. I am not sure whether the tax will be charged by the Indian crypto exchange or a user has to separately pay it. Does anyone here have the answers? If yes then, please reply here.

There is no official guidelines available till date. However, if the exchange is deducting the TDS, that should reflect in your 26AS form. That will give our government an idea on how much value you have transacted. Crypto exchanges will no be deducting 30% taxes, it's highly unlikely! So you have to keep track of all your crypto to fiat transactions. That 1% TDS will help you match you taxes with the calculation.

For example, you see that crypto exchanges have deducted 1000 rupees TDS in the entire financial year as per 26AS form. That means, your taxable crypto transaction value must be 100,000 rupees. So you are expected to pay 30,000 in crypto taxes.

So basically we just multiply the TDS by 30 to get the require amount of tax to be paid.
For example here 1000 rs is TDS and so 1000 x 30 = 30000 rs to be paid as tax.
But then I have a doubt. 30% tax is applicable on the transacted value or net income/profit.
I think it should be from the profit because if I am using 100000 to get a profit of 10000 then why would I pay 30000 as a tax.

No no, this isn't true tax is to be paid at 30% on the profit from sale while TDS of 1% will be deducted on sale price. So a simple multiplication by 30 won't help. You'll have to keep proper calculations.