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Cryptocurrency: Tax department may have to pay extra TDS on such earnings from cryptocurrencies

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Cryptocurrency: The tax department is keeping an eye on the interest earned from cryptocurrencies. The Tax Department is preparing to levy additional tax on such income. Many Indians who have kept cryptocurrencies in the platform outside India, from which they earn through interest, the tax department is keeping an eye on such income.

TDS possible on interest income received from crypto
The tax department is considering levying similar charges ranging from levying TDS on such transactions and interest income earned by Indians. The government is considering levying 20 percent TDS on such transactions. In fact, Decentralised Finance (DeFi) built on blockchain is such a financial ecosystem through which many Indians are earning interest by depositing cryptocurrencies for a fixed period.

There is a provision of 30 percent tax on income from crypto
Earlier, from April 1, 2022, it has been decided to levy 30 per cent tax on income from cryptocurrencies so that the people transacting it can be monitored. With this, it will be possible to find out who are involved in its transaction. Recently the Finance Minister said that “How can we track these transactions, which were being done in electronic code. So we wanted to be sure. That’s why we decided to tax 30 per cent cryptocurrencies. Decided so that we will be able to know who is buying and who is selling it.

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