Various tax proposals, including a 30% tax on income from trade in cryptocurrencies, that were announced in the Union Budget, came into effect on Friday, the first day of the financial year 2022-’23.
In the Budget presented on February 1, Finance Minister Nirmala Sitharaman had announced a 30% tax on income made from the transfer of digital assets. Such income will be taxable even if the taxpayer’s total income is below the taxable income slab of Rs 2.50 lakh. This tax will apply to cryptocurrencies and non-fungible tokens.
Non-fungible tokens are blockchain technology-supported digital files such as photos, videos, and audio, that can be traded using cryptocurrencies.
The finance minister had also announced that the Reserve Bank of India will, in this financial year, issue a new digital rupee that would use blockchain and other technologies.
The revised norms of levying a 1% tax deducted at source on the sale of immovable property whose value is more than Rs 50 lakh, also came into effect on Friday.
In the new financial year, taxpayers will also have the option to update their income tax returns. Taxpayers will be allowed to file one updated return every financial year to declare any income they might have missed to disclose in their original income tax returns, Sitharaman had announced while presenting the Union Budget.
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