CURRENT AFFAIRS

Detailed explanation-1: -The government on Tuesday said an amount of Rs 60.46 crore has been received in tax from entities for transactions in virtual digital assets (VDAs), including cryptocurrencies, since the introduction of TDS provisions in July.

Detailed explanation-2: -To tax Crypto, a new section 115BBH was introduced in the 2022 budget. This section imposes a 30% tax (plus applicable surcharge and 4% cess) on profits made from Crypto trading (starting from April 1, 2022). This rate is the same as India’s highest income tax bracket (excluding surcharge and cess).

Detailed explanation-3: -Any profits that will or has been incurred from the above transactions are subjected to a 30% tax, which is equivalent to India’s highest income tax bracket. Furthermore, if the transaction exceeds INR 10,000, it will be taxed by an additional 1%.

Detailed explanation-4: -Vanuatu: Vanuatu is a tax-free destination for cryptocurrency traders and investors. The country has no capital gains tax, no income tax, and no VAT, making it an attractive destination for crypto enthusiasts. Malta: Malta is a cryptocurrency hub and has a favorable tax environment for digital assets.