Govt seeks to further tighten crypto tax rules – Times of India

NEW DELHI: As a part of the amendments to the Finance Bill, the Centre has proposed additional tightening of tax proposals round crypto assets, together with clearly specifying that losses incurred throughout a few of the transactions can’t be used to set off towards income from different offers.
As well as, whereas computing the revenue from the switch of digital digital property (VDAs), no deduction in respect of any expenditure, aside from the price of acquisition, or allowance might be allowed. Sure amendments on the 1% tax deducted at supply (TDS) provisions have additionally been moved.
The discover for amendments has been circulated to members of the Lok Sabha with the 39 proposals anticipated to be moved on Friday. If there’s unhealthy information on the crypto entrance, tax consultants mentioned that there’s an vital clarification relating to the federal government’s choice to retrospectively disallow treating well being and training cess as a enterprise expense as some courts had dominated.
The federal government has now proposed that the tax division won’t impose a penalty of fifty% in case there’s a reassessment of circumstances the place entities had claimed that well being and training cesses have been enterprise bills.

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