The Income tax department has clarified that the Tax Deduction on Source (TDS) on Virtual Digital Assets (VDA) continues to be 1%.
The clarification came after when some media reports few days ago mentioned that the TDS rate for VDA has been dropped to 0.1% from 1% as announced earlier in the Union Budget 22-23. The 1% TDS will be applicable from July 1.
Regarding this, Income tax department has tweeted “Some media reports have come to the notice of CBDT claiming that the rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%. It is hereby clarified that there is no change in the rate of TDS on VDA, which continues to be 1%.”
“It is hereby clarified that there is no change in the rate of TDS on VDA, which continues to be 1%,” the statement further added.
Further, the government will soon finalise a consultation paper on cryptocurrencies with inputs from various stakeholders and institutions.
Some media reports have come to the notice of CBDT claiming that the rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%.
It is hereby clarified that there is no change in the rate of TDS on VDA, which continues to be 1%.@FinMinIndia— Income Tax India (@IncomeTaxIndia) June 8, 2022
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