Gaffe Adjusted Income Tax Department, “restores” 1% TDS on virtual assets after “reduction”

Income Tax Department clarifies that TDS on virtual digital assets remains at 1%

In a mix of sorts, the income tax department’s portal on Wednesday updated its tax deduction at source (TDS) document, reiterating that the TDS on virtual digital assets remains at 1%, as stated in the Union Budget for 2022-23, after which it was previously mentioned that the rate had been reduced to 0.1%.

There was a stir after the department’s website previously mentioned that the TDS rate for virtual digital assets had been lowered to 0.1% from the announced 1% TDS for such assets. in the Union Budget.

However, after the change was noticed by a part of the people, the website has updated the error correction document.

Several crypto platforms and investors have been actively discussing the issue on social media.

Looks like it was a typo and has now been corrected and updated by the income tax department on all links. https://t.co/T8raxR4lOwpic.twitter.com/RtB5sNrxRX

– Indian Cryptocurrency???? (@CryptooIndia) June 8, 2022

The website has also added that no tax will be applied, if the total value does not exceed Rs 10,000 in the financial year and does not exceed Rs 50,000 in the financial year, this figure remains unchanged.

TDS 1% for virtual digital assets will be applied from July 1, 2022 onwards.