ICAI working on research paper on cryptocurrencies

NEW DELHI: Chartered accountants' apex body ICAI will be preparing a research paper on cryptocurrencies that will cover various aspects, including taxation implications.

ICAI President Debashis Mitra on Tuesday said the institute is working on a research paper on cryptocurrencies, which is expected to be ready in one-and-a-half months. Currently, cryptocurrencies are unregulated in the country. Mitra said once the research paper is complete, it will be submitted to the government.

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"We are seized of the matter," Mitra told reporters here when asked about cryptocurrencies. The Union Budget 2022-23 has brought in clarity concerning the levy of income tax on crypto assets. From April 1, a 30 percent I-T plus cess and surcharges will be levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.

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Besides, the budget proposed a 1 percent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals or HUFs who are required to get their accounts audited under the I-T Act.