Indian Government imposing 30% Tax and 1% TDS on crypto-related income, since 1 April 2022. But crypto reward points and e-vouchers are really tax-free as not, this is a very big question among crypto users.
Actually, there are many online platforms like credit card companies, online gaming platforms, travel booing sites, etc that offer crypto rewards to their users. As per government guidelines, all rewards and income related to the crypto are taxable.
But when we play games and earn crypto rewards, that time we are out of the cryptocurrency system. Similarly, when someone pays his credit card bill and gets cashback in crypto, this becomes completely out of the crypto income.
So, such Crypto Reward Points And E-Vouchers Are Really Tax-Free because they are out of the crypto graphic system. They are just using blockchain technology for improving their service and moving forward with the time.
What Crypto Reward Points And E-Vouchers Are Really Tax-Free
All income that you get from a non-cryptographic business or in which you do not deal in any kind of virtual digital asset is considered free from tax. For example, if you are paying your credit card bill or booking a ticket online to watch a movie, then in this condition you are not using virtual digital acid in any way.
In such a situation, if the credit card companies want to give cashback and the movie booking site wants to provide you with the e-voucher, then it can also give it in the fiat cash.
So, all such crypto reward points and e-vouchers that we get from doing regular or non-crypto business are excluded from crypto tax such kind of notification is going to be released soon from the Tax department.
Complete List Of Companies offers Rewards Points And E-Vouchers
- Online Gaming Companies
- Payment Companies
- Credit or Debit cards
- eCommerce Apps
Tax-Free Rewards And Vouchers
- Reward Points on Credit Cards.
- Airline miles
- Gift Vouchers
- Online Mutual Funds Transactions
No, the Tax department is going to clarify it soon.
30% TAX and 1 % TDS.
What is the new Crypto tax guideline for traders?
As per the new taxation system in India, traders have to pay 30% tax on their Crypto income, and 1% TDS will be detected from their online transactions. 1% TDS is similar to exchange transactions in that have to detect each and every transaction.
Each and every kind of income related to Crypto is taxable. Suppose you are receiving a Crypto gift card from a friend, then you have to pay 30% tax on it.
If you are investing in IDO, ICO and IEO projects then you have to pay a 30% tax on your profit.
If you are receiving airdrops, farming, and is taking rewards then you have to pay 30% tax on your income because you are directly involved in the cryptocurrency market and cryptocurrency business.
But in some cases, you are not bound to pay recruits to, suppose you are buying a movie ticket and receiving cashback in the digital wallet. This is something different scenario.
In this case, you are just receiving reward points, and he watches in the digital ballot and Income Tax Department has to issue separate guidelines for virtual digital assets that are taxable or not.