India DeFi Txns Under Radar: Are You Ready for the 20% TDS?
India\'s DeFi landscape is changing rapidly! DeFi txns under radar now; Users to pay 20% TDS? Source link. Are you prepared for the new tax implications? A new report suggests that the Indian government is intensifying its scrutiny of Decentralized Finance (DeFi) transactions.
DeFi Transactions Facing Increased Tax Scrutiny
According to a local news source, India’s Central Board of Direct Taxes [CBDT] is planning to impose a 20% tax deducted at source [TDS], an equalization levy on such transactions and... This could significantly impact Indian users engaging with DeFi platforms.
20% TDS on DeFi Earnings: What You Need to Know
DeFi txns under radar now; Users to pay 20% TDS? Source link. If this plan goes through, Indians would now have to pay taxes on earnings from deposits or trading activities in DeFi. This follows the recent implementation of other crypto taxes in India.
Understanding Crypto Taxes in India: A Comprehensive Guide
How Much Tax Will You Pay on Crypto in India? In short, two types of crypto taxes are now set to be levied on crypto assets. There is a 30% tax on the annual profits from crypto investments, and now, potentially a 20% TDS on DeFi transactions.
The Impact of 30% Tax and 1% TDS on Crypto
The Indian government formally made crypto returns taxable quite recently. The regulators imposed a 30% tax and a 1% TDS on crypto transactions. After the introduction of the 30% tax and 1% tax deducted at source (TDS), the tax department of India shall scrutinise interests earned on cryptocurrencies from platforms. A higher TDS rate is now applicable to cryptocurrency transactions above a specific threshold. TDS applies to both buyers and sellers on crypto Exchanges.
Navigating the New DeFi Tax Landscape
Stay informed about the evolving regulations surrounding DeFi and crypto in India. We provide up-to-date information and resources to help you understand your tax obligations.