Some believe that this would discourage investment in cryptocurrency, it would be detrimental to the industry. While many cryptocurrency platforms in the country have started to implement the move and educate the investors.
As the Reserve Bank of India (RBI) further tightens its stand on cryptocurrencies, the 1 per cent tax deducted at source (TDS) on virtual digital assets (VDAs) and cryptocurrencies came into effect from Friday. Crypto Tax: 1% TDS Rule on Digital Assets Effective From July 1; Industry Players Say ‘Wait and Watch’.
The Budget brought in a new section, 194R, in the I-T Act which requires deduction of tax at source at the rate of 10 per cent by any person, providing any benefit or perquisite exceeding Rs 20,000 in a year to a resident, arising from the business or profession of such resident.