TDS Collections From Transfer Of VDAs At Rs 158 Cr In FY23

Union Minister of State for Finance Pankaj Chaudhary told Rajya Sabha on Tuesday that the Direct tax collected by way of tax deducted at source (TDS) under section 194S of the Income-tax Act, 1961, on payments made upon transfer of Virtual digital Assets (VDA), aggregated to Rs 157.9 crore up to 20 March 2023 for FY2022-23.

The Minister also stated that Crypto assets are currently unregulated in the country, however, transactions in cryptocurrencies are subjected to provisions of various laws like the Prevention of Money Laundering Act, 2002 and Income-Tax Act, 1961.

The Minister mentioned in his written reply that the Financial Stability Board states in its Consultative Document titled “Regulation, Supervision and Oversight of Crypto-Asset Activities and Markets,” dated 11 October 2022 that investment and activity in the crypto asset market is largely self-contained and is mostly for speculative purposes with limited connections to the real economy.