The government of India has introduced new crypto tax penalties, including for the non-payment of crypto tax deducted at source (TDS).
Much to the disappointment of crypto community, Finance Minister Nirmala Sitharaman didn’t mention crypto in her Budget speech this year. Crypto income stays taxed at 30%, while TDS stays at 1%.
The Finance Minister presented the Union Budget for 2023 on Wednesday, one day after she presented this Economic Survey, highlighting the necessity for a common approach toward regulating the crypto ecosystem.
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Following the speech, co-founder of crypto exchange Coindcx, Neeraj Khandelwal, tweeted, “No changes to crypto taxation in India in the Budget Session. It stands at 1% TDS and 30% on profits. This puts India at a web3 disadvantage for another year.”
Although the finance minister didn’t mention crypto in her Budget speech, the Finance Bill reportedly contains an Income Tax Act amendment applicable to crypto TDS.
According to Crypto tax firm Koinx, the penalty for failure to pay or deduct crypto TDS includes an amount the same as the unpaid TDS, which will be imposed by the joint commissioner. Noting the same for late payments, a 15% interest per annum will also be imposed.