Latest news with #VirtualDigitalAsset
Time of India
a day ago
- Business
- Time of India
CBDT probes ‘evasion' via crypto investments
. Several 'High-Risk Persons' Under Lens For Not Complying With I-T Act Provisions NEW DELHI: The Central Board of Direct Taxes (CBDT) has launched an investigation against several 'high-risk persons' who were allegedly evading taxes and laundering unaccounted funds by investing them in cryptocurrency. These entities and individuals, who were identified for verification and scrutiny, were allegedly involved in Virtual Digital Asset (VDA) transactions and did not comply with the provisions of the Incometax Act, sources said. Three years ago, finance minister Nirmala Sitharaman got parliamentary approval to amend the law to mandate a flat 30% tax, along with the applicable surcharge and cess, on income arising from VDA transfer. The law also bars the deduction of any expenses, except the cost of acquisition. Neither is the set-off of losses on these investments or trading allowed, nor is it permitted to carry forward the losses. The review of VDA returns pertains to 2022-23 and 2023-24. The income tax department's data analysis has shown that a large number of persons violated provisions of the Income Tax Act by not filing the details of VDA in their returns, not paying tax on the income, or claiming cost indexation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo CBDT has already sent emails to thousands of individuals, asking them to review their returns and update the income arising out of VDA transactions, sources said. The move is part of the recent 'nudge' philosophy of the department, hoping that the emails will do the trick and action will be taken against only those who do not respond to the communication or do not correct their returns. While govt is yet to recognise cryptocurrency as an asset class, it decided to impose a flat 30% tax on VDAs, along with 1% tax deducted at source (TDS) on the sale consideration. This drew a lot of adverse comments from the crypto lobby, which stated that exchanges would shut down and trading would move out of the country and operate through illegal means. There has also been lobbying for recognising crypto as an asset, even as govt believes that there needs to be a global push for cross-border regulation. Govt is expected to issue the long-awaited consultation paper soon. . Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
a day ago
- Business
- Time of India
Unaccounted income invested in Virtual Digital Assets on CBDT radar
The Central Board Direct Taxes ( CBDT ) is investigating tax evasion and laundering of unaccounted income by high-risk persons through investment in crypto currency. Such entities and individuals which are engaged in Virtual Digital Asset ( VDA ) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification, sources said. As per the Section 115BBH of Income Tax Act, 1961 inserted by the Finance Act, 2022 a flat tax rate of 30 per cent (plus applicable surcharge and cess) on income from VDA transfer is applicable. The provision does not allow deduction of any expenses except cost of acquisition. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo Further, set-off of loss from VDA investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources pointed out that data analytics has shown that a significant number of persons have violated provisions of Income Tax Act by not filing Schedule VDA of ITR and offering tax on the income earned at lower rate or claiming cost indexation. Live Events ITRs filed by taxpayers are being verified with TDS returns filed by the Virtual Asset Service Providers (VASPs) popularly known as crypto exchanges and defaulters may be selected for further verification/scrutiny, they said. It is learnt that CBDT has recently sent emails to thousands of defaulting persons to review their ITR and update if any income on account of VDA transactions have not been properly declared. CBDT has recently embarked on a new approach termed as NUDGE (Non-intrusive Usage of Data to Guide and Enable) Taxpayers, as a part of TRUST Taxpayers FIRST philosophy. This campaign is seen as the third NUDGE campaign launched by CBDT in the last six months. Earlier, NUDGE campaigns were on declaration of foreign assets/income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC.
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Business Standard
a day ago
- Business
- Business Standard
Unaccounted income invested in Virtual Digital Assets on CBDT radar
The Central Board Direct Taxes (CBDT) is investigating tax evasion and laundering of unaccounted income by high-risk persons through investment in crypto currency. Such entities and individuals which are engaged in Virtual Digital Asset (VDA) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification, sources said. As per the Section 115BBH of Income Tax Act, 1961 inserted by the Finance Act, 2022 a flat tax rate of 30 per cent (plus applicable surcharge and cess) on income from VDA transfer is applicable. The provision does not allow deduction of any expenses except cost of acquisition. Further, set-off of loss from VDA investment or trading is not allowed to be set off against any other income or for carry forward to subsequent years. Sources pointed out that data analytics has shown that a significant number of persons have violated provisions of Income Tax Act by not filing Schedule VDA of ITR and offering tax on the income earned at lower rate or claiming cost indexation. ITRs filed by taxpayers are being verified with TDS returns filed by the Virtual Asset Service Providers (VASPs) popularly known as crypto exchanges and defaulters may be selected for further verification/scrutiny, they said. It is learnt that CBDT has recently sent emails to thousands of defaulting persons to review their ITR and update if any income on account of VDA transactions have not been properly declared. CBDT has recently embarked on a new approach termed as NUDGE (Non-intrusive Usage of Data to Guide and Enable) Taxpayers, as a part of TRUST Taxpayers FIRST philosophy. This campaign is seen as the third NUDGE campaign launched by CBDT in the last six months. Earlier, NUDGE campaigns were on declaration of foreign assets/income by taxpayers and withdrawal of bogus claims of deduction under section 80GGC. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
The Hindu
2 days ago
- Business
- The Hindu
I-T Department sends notices to ‘thousands' for not paying tax on crypto transactions
The Income Tax Department has sent notices to 'thousands' of taxpayers who have not paid tax on the cryptocurrency transactions, according to sources in the Central Board of Direct Taxes (CBDT). In 2022, the government had amended the Income Tax Act, 1961, to prescribe a 30% tax, in addition to an applicable surcharge and cess, on income arising from the transfer of virtual digital assets (VDAs), conventionally called crypto currencies or crypto assets. The provision did not allow losses to be set off against profits, and also did not allow the deduction of any expenses except the cost of acquisition. CBDT is investigating tax evasion and laundering of unaccounted income by high-risk persons through investment in crypto currency. Such entities and individuals which are engaged in Virtual Digital Asset (VDA) transactions and have failed to comply with the Income-tax Act, 1961 have been identified for verification. 'CBDT has recently sent emails to thousands of defaulting persons to review their income tax returns and update if any income on account of VDA transactions that have not been properly declared,' the source in the CBDT said. It is learnt that data analytics by the Income Tax Department has found that a 'significant number of persons' have violated provisions of Income Tax Act by not filing the relevant VDA-related schedule in their returns and paying tax on the income earned at lower rate, or claiming cost indexation. 'The ITRs filed by taxpayers are being verified with tax deducted at source (TDS) returns filed by the Virtual Asset Service Providers (popularly known as crypto exchanges),' the source added. Defaulters may be selected for further verification and scrutiny, they said. These crypto-related notices sent to the taxpayers are part of a new approach being followed by the CBDT under its Non-intrusive Usage of Data to Guide and Enable Taxpayers (NUDGE Taxpayers) programme. Previous attempts at similar 'nudges' were on the declaration of foreign assets or income by taxpayers and the withdrawal of bogus claims of deduction under Section 80GGC.
