The government proposed to tighten the norms of Cryptocurrencies:
The government proposed to tighten the norms of Cryptocurrencies by not allowing the loss incurred from the transfer of one VDA (Virtual Digital Asset) to compensate against the income arising from the transfer of another Virtual Digital Asset.
As part of the amendments to the finance bill 2022, the finance minister has gone ahead and removed the word “other” relating to the set of losses from gains in VDA. The VDA could be a token, number, or code that can be transferred, traded, or stored electronically.
From April 1st, there will be an income tax on crypto assets:
The Virtual Digital Assets will include Non-fungible tokens (NFTs) and the prevailing crypto currencies that gained a famous trend (or fad) in recent years. From April 1st, there will be an income tax (30% I-T plus cess and surcharges) on crypto assets, and on transactions, in the same way,
as it treats winnings from speculative transactions and horse races. The Budget also put forth a 1% Tax Deducted at Source (TDS) on payments towards digital currencies beyond Rs 10k, per year and the taxation of such gifts in the recipient’s hands.
The upper limit for Tax Deducted at Source (TDS) would be Rs 50k:
The upper limit for Tax Deducted at Source (TDS) would be Rs 50k per year for some specified people that include HUFs / individuals, who, under the IT Act, must get their accounts audited. The specifications related to 1% Tax Deducted at Source will be effective from 1st July 2022, and the gains will be taxed from 1st April 2022.
And in the customs Act, the finance bill intended to insert a section 135AA that stated if anybody publishes information regarding the classification or value of goods entered for export from India, or import into India, or details of the importer or exporter of such goods covered by this act unless required to do so under any law for the time being in force, then he/she shall be sentenced to imprisonment of up to 6 months or a fine of Rs 50k or both.
The new amendment:
The amendment after the new clause has been inserted now reads: if anybody publishes any information which is furnished to the customs by importer or exporter under this act, which relates to the classification or value or quantity of goods for import into India or entered for export from India,
along with the identity of the people involved or in a way, which leads to disclosure of such identity, which is required to do so under the law, for the time being in force, or by authorization of such importer or exporter, will be punishable with imprisonment.