The previous framework only required holders to declare the earnings of their trading. Once the new legislation is approved, it will come into force in 2023 but will apply to operations in 2022.
The circular from the CBDT amends the Income Tax rules to specify how firms and individuals should comply with the law. It also adds how the reporting format for the TDS should be spelled out.
According to Archit Gupta, founder and CEO of India-based digital currency tax filing startup Clear, India's tax regime for digital assets has some intricacies that need to be threaded with caution.
The tax law amendment requires individuals and businesses that receive $10,000 or more in digital currencies to report the sender's name, date of birth, and social security number to the government.
The clarification came after some observers noted that the TDS rate on the Income Tax Office's website was changed to 0.1%. Kashif Raza, was one of the first observers to point out the change.
Authorities in Thailand have formally introduced a seven percent value-added tax exemption for transfers of digital currencies made on government-registered exchanges.
The law specifies that any profit made from the transaction is taxable even when digital currency transactions do not involve Brazilian Real or other fiat currency.
The finance department says the details of its plans are yet to be decided, but with the incoming government's blessings, it intends to have fully implemented the tax clarity proposals by 2024.
Russia's State Duma has revised several draft block reward mining bill provisions, and one of these is a proposed one-year tax amnesty for block reward miners.
The proposals were brought by two left-wing minority parties, Block de Esquerda and Livre—with Livre seeking to tax gains above €5,000 (about $5,340.45) made from digital currencies.
Portuguese Finance Minister Fernando Medina confirmed to Parliament that his ministry is studying how to tax digital currency gains in the country.