Govt seeks to further tighten crypto tax rules – Times of India

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NEW DELHI: As part of the amendments to the Finance Bill, the Centre has proposed further tightening of tax proposals around crypto assets, including clearly specifying that losses incurred during some of the transactions cannot be used to set off against profits from other deals.
In addition, while computing the income from the transfer of virtual digital assets (VDAs), no deduction in respect of any expenditure, other than the cost of acquisition, or allowance will be allowed. Certain amendments on the 1% tax deducted at source (TDS) provisions have also been moved.
The notice for amendments has been circulated to members of the Lok Sabha with the 39 proposals expected to be moved on Friday. If there is bad news on the crypto front, tax experts said that there is an important clarification regarding the government’s decision to retrospectively disallow treating health and education cess as a business expense as some courts had ruled.
The government has now proposed that the tax department will not impose a penalty of 50% in case there is a reassessment of cases where entities had claimed that health and education cesses were business expenses.



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