The taxman is reportedly working on guidelines ahead of the first advance tax due date in June. The definition of NFTs and TDS 1% was all unclear at the time. CBDT will shed more light on 1% TDS as well as Crypto tax in Budget 2022-23.
Unnamed sources are quoted in a report from a business-standard. CBDT is working on direct tax guidelines on VDA. The tax payment is scheduled for June 15th. Assessors must give a rough estimate of their tax bill for the year and pay 15% by June 15.
There are some questions that demand clarification. The taxman is expected to explain 1% TDS on cryptocurrency transactions in addition to just defining NFT and whether they are covered under VDAs.
In order to provide a better perspective, the Indian government introduced a 1%. The government has stated that for every crypto transaction a 1% TDS is required and it makes day trading in crypto quite hard.
The government levied a flat 30% tax on income from all virtual digital assets including cryptocurrencies and NFTs.