TDS on cryptocurrency
Earlier this year, Finance Minister Nirmala Sitharaman proposed a 1% tax deduction (TDS) at source on any payments made in exchange for transfers of virtual digital assets (VDAs), often cryptocurrencies and non-fungible tokens (NFTs). is referred to as. For total transactions above Rs 10,000, the TDS rule will be applicable from Friday, July 1.
Tax will be deducted at the rate of 20% at the time of transfer of VDA if PAN of the deductor (buyer) is not readily available. Additionally, if the payer is not one of the specified people, TDS will be withheld at a higher rate of 5% (as opposed to the normal rate of 1%) if the individual has not submitted his income tax return.
pan aadhaar linking penalty
A fee of Rs 1,000 will be applicable if the PAN-Aadhaar link is completed on or after July 1, 2022. Earlier, till June 30, the fee would be Rs. 500. So when a person links their PAN and Aadhar, they have to first pay the penalty and request for linking PAN Aadhar once the payment is visible in the e-filing site.
TDS rules for doctors, social media influencers
There will be 10 per cent Tax Deduction at Source (TDS) with effect from July 1, 2022 on profits received from companies for sales promotion on doctors and social media influencers. According to a notification by the Central Board of Direct Taxes (CBDT), the provider of profit or perquisite can deduct tax directly under section 194R, though the taxpayer has to verify the possession of the recipient of any taxable amount.
As per section 194R, “Section 194R – deduction of tax in case of any profit or perquisite and the aggregate value of such profit/perquisite exceeds Rs. 20,000.
Note: The profit or perquisite must arise from the practice of business or profession by such resident.
If the aggregate value of profits or perquisites received during the entire financial year is less than Rs. 20,000, there will be no TDS.