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<keyword id="104359" type="General" weightage="20" keywordseo="Income-tax-return" source="Orion">Income tax return</keyword> forms from next year will have a separate column for making disclosures on gains made from cryptocurrencies and paying taxes, Revenue Secretary Tarun Bajaj said on Wednesday. The government will from April 1 charge a 30 per cent tax plus cess and surcharges, on such transactions in the same manner as it treats winnings from horse races or other speculative transactions. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> In an interview with PTI, Bajaj said gains from cryptocurrencies were always taxable and what the Budget proposed is not a new tax but providing certainty over the issue. "The provision in the Finance Bill is related to taxation of virtual digital assets. It is to bring certainty in taxation of cryptocurrencies. It does not convey anything on its legality which would come out once the Bill (on regulating such assets) is introduced in Parliament," he said. The government is working on legislation to regulate cryptocurrencies, but no draft has yet been released publicly. In the meanwhile, a central bank-backed digital currency will start circulating in the next fiscal to usher in cheaper, more efficient currency management. The 30 per cent plus applicable cesses and surcharge of 15 per cent on income above Rs 50 lakh will have to be paid on income from cryptocurrencies, he said adding the income tax return form from next year will have a separate column to declare gains from crypto. "Next year <keyword id="6374875" type="General" weightage="20" keywordseo="itr" source="Orion">ITR</keyword> form will show a separate column for crypto. Yes, you will have to disclose," he said. The launch of 'Digital Rupee' by <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> as well as a 30 per cent tax from April 1 on profits from digital asset transactions, including cryptocurrencies and non-fungible tokens (NFTs) was announced by Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> in her budget speech on Tuesday, as the country keeps pace with the global move toward virtual financial instruments. "The Government was very clear that it has to push for a tax on income from crypto assets. So we have brought in maximum rate and levied 30 per cent, with an applicable surcharge. We have also brought in TDS, so we will now track the transactions," Bajaj said. The Budget 2022-23 also proposed a 1 per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act. The provisions related to 1 per cent TDS will come into effect from July 1, 2022, while the gains will be taxed effective April 1. Also, no deduction in respect of any expenditure or allowance shall be allowed while computing income from transactions in such assets. It has also specified that losses from the transfer of virtual digital assets will not be allowed to be set off against any other income. No deduction has been allowed since cryptocurrencies and virtual digital assets do not have any economic value, except the underlying technology, Bajaj said. The crypto market in India grew 641 per cent in the year through June 2021, according to an October report by industry research firm Chainalysis. "It was always taxable, I am not saying it's not a new tax, I'm bringing certainty in tax. Now if you show crypto in the ITR form, you will have separate head crypto and it will charge you 30 per cent tax," he said, adding that the message behind the Budget announcement is that crypto is taxable. Gains from crypto are chargeable to income tax even at present, Bajaj said, adding the Assessing Officer will assess the ITR based on crypto income that the assessee has shown. "If somebody says it's a long-term capital gains tax (LTCG), he may say no it's not LTCG tax, it is a business income and hence liable to 30 per cent tax," he said. With regard to taxability of cryptocurrency prior to April 1, 2022, Bajaj said, "For transactions before April 1 you will show in some head in your ITR and the Assessing Officer will do an assessment for you". Giving example, he said currently trading in the derivative is not considered as investment or capital gain but is treated as business income. "The Assessing Officer will take a call on what head crypto gains should be charged," the Secretary said. Bajaj said the new currency that RBI will bring will also have the underlying blockchain technology. "So, what we are also saying is that since it doesn't have economic value, we will not allow set-off of losses or carry off loses." Bajaj said currently some people are showing crypto gains as income and paying taxes, but some people are not doing it. With TDS provision introduced, transaction information will reach tax department automatically. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/ether-cardano-and-solana-surge-in-trade-most-altcoins-in-the-green/slidelist/89289934.cms">Ether, Cardano and Solana surge in trade, most altcoins in the green</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tata-motors-maruti-suzuki-tech-mahindra-hdfc-and-other-hot-stocks-on-february-2/slidelist/89287937.cms">Tata Motors, Maruti Suzuki, Tech Mahindra, HDFC and other hot stocks on February 2</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/china-may-not-like-cryptocurrencies-but-is-pushing-blockchain-across-164-cities-companies-and-other-entities/articleshow/89246924.cms">China may not like cryptocurrencies but is pushing blockchain across 164 cities, companies and other entities</a>

Income tax return form will have a whole new column just for crypto next year

Now, we all know that any profit made from trading in cryptocurrencies will be <a href="https://www.businessinsider.in/budget/news/from-cryptocurrencies-to-nfts-india-to-tax-all-virtual-digital-assets-at-30/articleshow/89268587.cms">taxable at 30%</a>. But that’s just the beginning. There’s a lot more that India’s Finance Minister didn’t say, than what she said. The way the government is treating <keyword id="2721952" type="General" weightage="100" keywordseo="crypto" source="Orion">crypto</keyword> traders in the same way it treats gamblers or lottery enthusiasts. We can’t stop you, so we’ll tax you so much that it might break your spirit. <div type="image" title="30% tax on virtual digital assets" msid="89461919" hostid="261"></div> Crypto critics would say that it is the right thing to do because whether it’s <a href="https://www.businessinsider.in/investment/news/bitcoin-ethereum-and-others-have-lost-nearly-40-percent-since-their-record-highs-but-investors-are-still-better-off-than-they-were-a-year-ago/articleshow/88823379.cms">Bitcoin, Ethereum or Solana</a>, they can’t be used as currency. Those who buy any coin or non-fungible token (<a href="https://www.businessinsider.in/investment/news/15-most-expensive-nfts-of-2021-by-pak-beeple-cryptopunks-and-others/slidelist/88540923.cms">NFT</a>) are just hoping that someone else will buy it at a higher price. If that’s not a gamble, then what is. If the argument is that cryptos are inevitable in the <keyword id="50691" type="General" weightage="50" keywordseo="digital" source="Orion">digital</keyword> era, the government is anyway looking to get the <a href="https://www.businessinsider.in/budget/news/digital-rupee-to-be-introduced-by-the-rbi-confirms-fm-nirmala-sitharaman-speech/articleshow/89268343.cms">digital rupee</a> out in the market this year. So, for them, there isn't a lot of love or trust left to lose. <a href="https://www.instagram.com/p/CZejH5-KZjw/" data-type="tilCustomLink" target="_blank">What is Digital Rupee?</a> That's evident in the 1% tax to be deducted at source (<keyword id="17506" type="General" weightage="20" keywordseo="tds" source="Orion">TDS</keyword>). Every time someone buys crypto they have to deduct a 1% tax on the value of the sale. The question is, why is the government asking for TDS? <div type="image" title="Why is the govt asking for TDS?" msid="89461993" hostid="261"></div> It basically wants to track <a href="https://www.businessinsider.in/investment/news/bitcoin-does-not-make-payments-anonymous-just-really-hard-to-trace/articleshow/85068905.cms">crypto transactions</a> itself, instead of relying on data provided by the exchanges. And, therefore, find out who are the people buying and selling cryptos, how much are they buying/selling, and maybe even, what else they do, financially speaking. These are important signs for you to keep in mind before putting more money into these ‘virtual digital assets’ before the <a href="https://www.businessinsider.in/cryptocurrency/news/no-india-crypto-bill-in-sight-even-after-winter-session-of-parliament-comes-to-a-close/articleshow/88449161.cms">crypto bill</a> makes it through the <keyword id="6354721" type="General" weightage="20" keywordseo="parliament" source="Orion">Parliament</keyword>. Policymakers don’t like crypto — if you didn’t know by now, you should. So, expect very little empathy, and an even lesser amount of mercy if the taxman comes calling. For now, the good news is that the new 30% tax kicks in only from April 1. Until then, you may still have to pay the tax on capital gains ⁠— long-term or short-term ⁠— or business income <a href="https://www.businessinsider.in/investment/news/cryptocurrency-faqs-everything-you-need-to-know-about-the-cryptocurrencies-the-crypto-market-and-everything-in-between/articleshow/87465186.cms">as the case may be</a>. Tightening the noose around crypto can achieve one more thing ⁠— move more money into the stock market. Here’s how. <div type="image" title="There are messages hidden in the crypto tax" msid="89462135" hostid="261"></div>

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Income tax return form will have a whole new column just for crypto next year

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SIMPLY PUT: There are messages hidden in the crypto tax

Simply Put: There are messages hidden in the crypto tax

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