TDS rules on crypto currencies

The income-tax department has come out with detailed disclosure requirements for TDS deductions for virtual digital assets, under which the date of transfer and mode of payment will have to be specified.

From July 1, tax deducted at source (TDS) of 1 per cent will be levied on payments towards virtual digital assets or cryptocurrencies beyond Rs 10,000 in a year, as the Finance Act 2022 has introduced Section 194S in the I-T Act.

The Central Board of Direct Taxes (CBDT) on June 21 notified certain amendments in I-T Rules with respect to furnishing TDS returns in Form 26QE and Form 16E.