Crypto, virtual digital assets will not attract TDS in certain cases; know the guidelines
Crypto, virtual digital assets not to attract TDS in certain cases; know the guidelines
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The tax is required to be deducted at the time of credit of amount or at the time of payment to the resident individual, whichever is earlier. The tax will be deducted only if the amount paid exceeds the specified limit, the Central Board of Direct Taxes (CBDT) said.
However, the TDS will be applicable only if the transaction amount exceeds the specified limit. The specified limit can be breached either in a single transaction or multiple transactions. So, when is TDS not applicable on the buying and selling of VDAs and cryptos?
Who is a ‘specified person’ as per the Income-tax Act?
As per section 194S of the Income-tax Act, 1961, a specified person is:
a) An individual or Hindu Undivided Family (HUF) who does not have any income under the head ‘profits and gains of business or profession’ or,
b) An individual or Hindu Undivided Family (HUF) having income under the head ‘profits and gains of business or profession’.
The total sales/gross receipts/turnover from business carried by him/her does not exceed Rs 1 crore or in case of profession, the turnover does not exceed Rs 50 lakh in a financial year