In a sort of confusion, the Income Tax Department’s portal on Wednesday updated its document on Tax Deduction at Source (TDS), reiterating that TDS on virtual digital assets remains at 1 per cent, as per the Union Budget for 2022-23. stated in. It had earlier mentioned that the rate had been reduced to 0.1 per cent.
There was a stir after the department’s website mentioned earlier that the TDS rate for virtual digital assets has been reduced from 1 per cent TDS to 0.1 per cent on such properties announced in the Union Budget.
However, after the change was noticed by a cross section of people, the website updated the document, rectifying the error.
Several crypto platforms and investors actively discussed the matter on social media.
Looks like it was a typo which has now been corrected by the Income Tax Department and updated on all links. https://t.co/T8raxR4lOwpic.twitter.com/RtB5sNrxRX
– Crypto India???? (@CryptoIndia) 8 June 2022
The website had also said that no tax would be applicable if the total value during the financial year does not exceed Rs 10,000 and during the financial year does not exceed Rs 50,000, which remains unchanged.
1 percent TDS on virtual digital assets will be applicable from July 1, 2022.