The Government is drafting FAQs on Crypto Taxation

By SilverLineswap | SilverLine Swap | 18 Apr 2022


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“Any investment should contain Value”

The government is working on the FAQ on Taxation of Cryptocurrencies, which will give a nuanced clarification on the adoption of income tax and GST (Goods and Service Tax council ) on virtual digital assets, an official said. As per the report, The Department of Economic Affairs is drafting a set of Frequently Asked Questions (FAQs) on Crypto taxation. Along with that, the Reserve Bank of India and the Revenue Department will be investigated by the Law Ministry on the same.

The reason that the government is working on the Frequently Asked Questions (FAQs) on the taxation of Cryptocurrency and Virtual Digital assets is below stated:

The FAQs are for informational purposes and do not have any legal sanctity. According to the Law Ministry, the aim is to sort out the confusion and to ensure that there is no Bailing away from not paying off the taxes by the citizens. The Revenue Department and the Reserve Bank of India are basically focusing on the tax on Cryptocurrencies and other digital assets. The 2022–23 budget has brought us clarity in regards to the levy of income tax on Crypto trading. In the budget, they also proposed a percent TDS (tax deducted at source) on payments involving the virtual currencies beyond the Rs. 10,000 in a year and taxation of such gifts in the hands of the recipient. Individuals and HUFs who have their own accounts audited under the I-T Act will be allowed to deduct TDS of Rs.50,000 a year. The 1% TDS will come into effect from July 1, 2022, which is provisionally related.

And FAQs are likely to provide clarity on whether the Cryptocurrency falls under the section of Goods and Services from the GST perspective. But, GST law has not mentioned the Classification of Cryptocurrency. In the absence of the law regulating such virtual digital assets, the classification is taken into account within the legal frameworks categorizing it as an “Actionable Claim”. In law, an actionable claim is any type of debt other than a mortgage secured by a real property that can be enforced by a Creditor.

Apart from this, the government is working on regulating Cryptocurrencies, but officially no draft has been released. With this, I understand that Cryptocurrency should be accepted in India with a regulatory framework. The reason why Cryptocurrency is slowly being accepted by each

and every country is that the number of Crypto users increase day by day. Cryptocurrency is Volatile in nature, but still, people are ready to take the opportunity to invest. In such a scenario, I will suggest one of the platforms that I heard about in recent times, Silverline Swap. Yes! I have read about Silverline swap and I felt there is something unique in them. GUN is one of the

unique features of the SilverLine Swap!!. For more details please do check their official website.

Go India!!! Go Crypto!!!

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SilverLineswap
SilverLineswap

The silverline token is a utility token, aiming to provide safety to investors through its own decentralized exchange and a private dashboard! SLN token is at the heart of the SilverLineSwap ecosystem. Buy it, Win it, Farm it, Spend it, and Stake it.


SilverLine Swap
SilverLine Swap

The silverLine token is a utility token, aiming to provide safety to investors through its own decentralized exchange and a private dashboard! SLN token is at the heart of the SilverLineSwap ecosystem. Buy it, Win it, Farm it, Spend it, and Stake it.

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