Union Budget 2023 Update for Crypto Enthusiasts
On February 1, 2023, the Indian government unveiled its Union Budget, including numerous recent tax laws changes.
Regarding cryptocurrency taxes, new legislation on cryptocurrency TDS has been released. Late or delayed crypto TDS payments will be subject to a fine under the most recent legislation.
The Indian Finance Minister Nirmala Sitharaman did not mention digital assets in her address; therefore, the TDS rate remains at 1%, and the crypto income tax rate remains at 30%.
Although the finance minister avoided mentioning digital assets in the budget, a new change to the tax code has been made that applies to crypto TDS. And in accordance with that, if crypto TDS is not deducted or paid, a joint commissioner will issue an acceptable equivalent to that amount as punishment; nevertheless, late payments will result in a 15% annual interest charge.
It's also suggested that failing to do so will result in a seven-year prison sentence.