Six important money matters that need your attention this July

moneycontrol.com:

Whether you’re an investor in a mutual fund or a cryptomaniac or an income-tax payer, there are a number of important money changes that will affect your money box in July. Read on to find out what they are.

TDS on cryptocurrency transfers

From July 1, your cryptocurrency sale transactions will attract TDS (Tax Deducted at Source) of 1 percent. The purpose of levying TDS on crypto transfers is to capture the details of all the transactions related to virtual digital assets (VDAs).

TDS at the rate of 1 percent will be deducted on the payment of a sale consideration of VDA, if the cumulative sale consideration exceeds Rs 10,000 in any financial year. This will be applicable to all VDA transfers — cryptocurrencies, non-fungible tokens (NFTs).

The threshold limit for TDS is Rs 50,000 for specified persons, which includes individuals and Hindu Undivided Family (HUFs). TDS needs to be deducted at the time of making payment or transferring the consideration to the seller. For instance, if someone is buying VDA valued at Rs 1 lakh, Rs 1,000 (1 percent of Rs 1 lakh) needs to be deducted and the remaining Rs 99,000 should be transferred to the seller of the VDA.

The onus of withholding the TDS lies with the person making the payment to the seller — it can be a buyer, an exchange or a broker. That means TDS needs to be deducted from the selling price and, after deducting the TDS amount, they can transfer the rest to the seller.

Also read: Selling cryptocurrencies bypassing exchange? Here’s how to do 1% TDS deduction

Influencers to be taxed on freebies

Often, companies remunerate social media influencers in kind. Such gifts or perks will be taxed from July 1. However, if an influencer returns a gift, there will be no tax on the item.

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