Over Rs 700 crore in TDS collected this financial year

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Over Rs 700 crore in TDS collected this financial year

The Central Board of Direct Taxes has collected more than Rs 700 crore as Tax Deduction at Source this financial year after a new TDS regime was brought in for online gaming and trade in cryptocurrency, said the tax body's chairman, Nitin Gupta.

In a interview with ANI, Gupta said that more than 600 crores of TDS have been collected during the current financial year from online gaming companies, while about 100 crore worth of such tax has been collected from crypto assets.

She added that there is a 'phenomenal increase' in transactions in virtual digital assets. Due to the size and frequency of these transactions, it is essential to establish a specific tax regime. In addition, she proposed a tax on income from the transfer of any virtual digital asset at 30 percent.

Although India's position on crypto has been that any legislation for banning cryptocurrencies can be effective only after significant global collaboration on the assessment of the risks and advantages, the taxation has been brought in.

In India, cryptocurrencies are currently unregulated. The government doesn't register crypto exchanges, and it maintains crypto assets, by definition, as borderless and require 'international collaboration'.

Cryptocurrencies have existed for more than a decade and have experienced substantial turbulence. Crypto-asset activities, as many experts say, have also grown in complexity for the financial sector's stability.