RBI today announced to extend the EMI moratorium for another period of three months from 01st of June to 31st August 2020, this means that the existing EMI holiday applicable on loans including working capital limits are further extended to next three months, starting from June 2020.
RBI further announced that Working capital interest can further be treated as term loan outstanding and can be repaid in installments up to March 2021.
This is applicable to all types of borrowers including Individuals , Proprietorship, Partnership , LLP, Private Limited Company and others
In India, NGO can be registered as a society, trust, or Section 8 company. All the above structures are formed for carrying on non-profit activities to promote social welfare education and to provide medical relief to the society
Society Registration:
Information Required for Society Registration :
Minimum 7 Members are Required
There should be person whom members should Designate 1. President 2. Manager 3. Secretary 4. Treasurer
Objects of Society : Like Promotion of Education, Child Development, Water Management, Housing Society Etc.
Name of Society
Initial and Annual Membership Subscription Amount from Members.
If Society has scope of work for all over the state of Rajasthan than 4 Members from the different District are Required
Category of Members (General, OBC, SC etc)
Documents Required for Registration :
Aadhar Card of all the Members of Society( Aadhar Card is required and Aadhar must be linked for Mobile OTP )
Photo of all the Designated Person i.e. President, Manager, Secretary, Treasurer
Electricity Bill of Office Address of Society
Signed by Laws from Designated Persons
Authorization letter to Authorised person : who is handling the society Registration work : Company Secretary or Advocate.
Update : Aadhar of Minimum 7 Members are required for Online Processing of Application, Please note that aadhar must be Mobile OTP enabled.
Time Required for Registration: 8-12 Working Days
Government Fee for Registration :
Normal Society i.e. Education : Rs. 10016/-
Water Management : Rs. 500/-
Cow Help : Rs. 100/-
Professional Fee varies from Rs. 5000-8000
Trust Registration
Activities to be carried on by trust is governed by trust deed, that is what is mention under the trust deed are the activities that a trust can carry on
Following charitable activities can be carried on generally by trust :-
Promotion of education
Promotion of health
Promotion of sporting activities
Promotion for betterment of society
To Increase self employment by skill development
To provide medical relief to organise medical camps and to arrange medicines for poor
To promote cleanliness, to preserve environment and plantation of trees etc
Step by Step procedure for Registration of Trust
Declaration of trust: any person can declare trust with some property for the purpose of promotion of its objects. The person who declared trust is called settler
Name of Trust: name the trust should end with the word “trust” I.e. you may have a name like “Shri shyam Charitable Trust”
Address of the trust the address of the trust will decide its jurisdiction for registration and applications for under income Tax Act.
Trustee: the settlor will declare the name of the trustees who sell accept all the terms mention in the trusted and act as a trustee to the trust.
Board of Trustees: the trustees will be known as board of trustees and will be e designated has President, vice president secretary and treasurer
Terms and conditions regarding managing of Trust funds
Powers of the trustees
Duration of trust etc..
Once the above mentioned things are settled we have to draft the trust deed and get it signed from the settlor and trustees of the trust.
The trust deed should be on non judicial stamp paper of rupees 500
The trust deed should also be notarized.
Application for registration of Trust deed to devsthan vibhag:
The Charitable Trust are registered under Rajasthan public trust act under the jurisdiction of devasthan vibhag, for registration with devsthan vibhag an application is required to be submitted along with trust deed and ID and address proof of trustees and settlor
Documents Required for Registration of Trust in Rajasthan
Aadhar Card and Pan Card Copy of Settler
Aadhar Card and Pan Card Copy of Trustees
Electricity Bill of Office of Trust
Rent Agreement of office of Trust in any
Photo of Settler
Photo of Trustees
Draft Trust Deed
Charitable Public Trust Deed
Ready-Made Trust Deed Draft Copy in Word
Just Change Basic Details like Name, Address, etc or make any changes you want
Section 8 Company is a Company Incorporated for the promotion of Commerce, Art, Science, Sports, Education, research, social welfare, religion, charity, protection of environment and intends to apply its profits if any in promoting its objects , not for-profit (NGO) under the Provisions of Section 8 Companies Act, 2013.
The Company under section 8 is registered without the word Limited/Private Limited at end of its name, and the words Foundation, Association, Institution, Chamber, Federation are added in the name of Section 8 company.
Presently section 8 company is a most accepted form of NGO due to transparency and governance structure available to the company with the compliance of provisions of Companies Act, 2013.
Activities of Generally carried out through Section 8 Company :
Educational Institute
Hospital and Research Center
Sports Academy
Charity Purpose
Environment Awareness
Legal Awareness
Federation
Association
Chamber, etc
Requirements for Incorporation of Section 8 company :
Required Minimum two Directors
Required Minimum two Shareholders/Members
PAN, Aadhar Card and Latest Bank Statement Copy of All the Directors and Members
Work Proposed to be done, Grounds on which work will be done
Proposed Income and Expenditure Account for three years ( Expected receipts and payments )
Electricity Bill, Rent Agreement / NOC for Registered Office Address of the Company
Procedure for Incorporation of Section 8 Company:
Application for Obtaining Digital Signature of proposed Directors
Application of Obtaining Director Identification Number (DIN)
Name Approval Application to Registrar of Companies
Application for obtaining Licence for Section 8 Company
Application to Registrar of Companies for Incorporation of Section 8 Company
Documents Required for Opening Bank Account of Section 8 Company:
Certificate of Incorporation issued by ROC
Memorandum and Articles of Association of company
PAN of Company
Board Resolution for Opening of Bank Account and Authorising One of the Directors or any other person to act as Authorised Signatory
DeFi stands for “Decentralized Finance,” and it refers to a set of financial services and applications that are built on decentralized blockchain networks, primarily on the Ethereum platform. Unlike traditional financial systems that rely on intermediaries like banks, brokers, and exchanges, DeFi aims to provide open, permissionless, and inclusive financial services directly to users, without the need for centralized control.
Key components of DeFi:
1. Smart Contracts: DeFi applications are powered by smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. Smart contracts automate financial transactions, removing the need for intermediaries.
2. Decentralized Applications (DApps): These are applications built on blockchain platforms that enable users to access various financial services, such as lending, borrowing, trading, and more. DApps can be accessed through web browsers or mobile apps.
3. Liquidity Pools: DeFi platforms often rely on liquidity pools, which are pools of funds locked into smart contracts. These pools facilitate trading, lending, and borrowing activities by providing liquidity to the platform.
How DeFi works:
1. Decentralized Exchanges (DEXs): DEXs allow users to trade cryptocurrencies directly with one another, without the need for intermediaries. Users can connect their digital wallets to DEXs and execute trades through smart contracts.
2. Lending and Borrowing: DeFi platforms enable users to lend their cryptocurrencies and earn interest or borrow assets by collateralizing their holdings. These processes are governed by smart contracts that automatically execute the terms of the loan.
3. Yield Farming: Yield farming involves providing liquidity to DeFi platforms by depositing funds into liquidity pools. In return, users receive rewards, typically in the form of additional tokens or fees generated by the platform.
4. Stablecoins: Stablecoins are cryptocurrencies pegged to stable assets like fiat currencies (e.g., USD) or commodities. They are widely used in DeFi to mitigate price volatility and facilitate trading and lending activities.
Benefits of DeFi:
1. Accessibility: DeFi opens up financial services to anyone with an internet connection and a digital wallet, regardless of their location or financial status.
2. Transparency: DeFi applications are built on public blockchains, making all transactions and smart contract code visible and auditable.
3. Security: DeFi relies on decentralized networks, reducing the risk of single points of failure and potential security breaches.
4. Financial Inclusion: DeFi can provide financial services to the unbanked and underbanked populations who lack access to traditional banking systems.
Despite its advantages, it’s essential to note that DeFi also comes with risks, including smart contract vulnerabilities, market volatility, and regulatory uncertainties. Users should conduct thorough research and exercise caution when participating in DeFi activities.
In this article we will discuss Drug Licence in Rajasthan, Drug Licence in Rajasthan is compulsorily required to be obtained from Rajasthan Drug Controller Organisation.
Popular Type of Drug Licence in Rajasthan for Medical Establishment
Retail License
Wholesale License
Retail Drug Licence in Rajasthan
Retail Drug Licence is required for opening of Retail Medical Shop in Rajasthan, to apply for a retail license in Rajsthan for medical shop following information and documents are required :
Information and Documents required for Obtaining Retail Drug Licence in Rajasthan
Partnership Deed, MOA, and AOA in case of Private Limited Company
Aadhar Card of Applicant/Authorised person
PAN Card of Applicant/ Authorised Person
Mobile No
Email id
Details of Registered Pharmacists
Aadhar Card
Pharmacist Reg. No
Experience
PAN Card
Mobile No
Email id
Registration Certificate
Specimen Signature
Office Address
Electricity Bill of Office Address
Rent/Lease Agreement, if a shop is on rent
Blueprint of Shop
Ward No of Office Address
Police Station Details of Office Address
Refrigerator Details, if any
Capacity of Refrigerator
Model of Refrigerator
Refrigerator Purchase Voucher/ Declaration
Licenses Fee for Application of Retail Drug Licence in Rajasthan:
Govt Fee Rs. 3000
Following Arrangement Should be Made in Shop
Shop height is greater than 8 feet
The Name of Firm Displayed On Upperside of Shutter With Paint Including Mobile Number/ Chemist And Drugist Mentioned For Retail Sale Shop
For Keeping Expired Drugs With Display “Expired Drugs Not For Sale”
For Storing Veterinary Drugs With Display “Veterinary Drugs Not For Human Use- Treatment Of Animals Only
Wholesale Drug Licence in Rajasthan
If you are doing medicine wholesale business by supplying it to medical stores across in Rajasthan , than you are required to obtain Drug Licence in Wholesale Category
Information and Documents required for Obtaining Wholesale Drug Licence in Rajasthan
Name of Firm
Type of Firm- Proprietorship Firm/Partnership Firm/LLP/Private Limited
Partnership Deed, MOA, and AOA in case of Private Limited Company
Aadhar Card of Applicant/Authorised person
PAN Card of Applicant/ Authorised Person
Mobile No
Email id
Details of Competent Person/ Registered Pharmacists
Aadhar Card
Pharmacist Reg. No
Experience
PAN Card
Mobile No
Email id
Registration Certificate
Specimen Signature
Office Address
Electricity Bill of Office Address
Rent/Lease Agreement, if shop is on rent
Blueprint of Shop
Ward No of Office Address
Police Station Details of Office Address
Refrigerator Details, if any
Capacity of Refrigerator
Model of Refrigerator
Refrigerator Purchase Voucher/ Declaration
In the case of Wholesale drug Licence above requirements of the retail license is required except that in place of registered pharmacist details of any other competent person having experience may be given.
Inspection by Drug Inspector for Drug Licence:
Every establish is inspected by drug Inspector of the area in which your business is located.
How to Apply for Drug Licence in Rajasthan Online with Fastlegal
Decide Type of Firm in which you want to carry on Business
Register your Firm or Company ( We will help you for Firm/Company registration also)
Collect all necessary documents
Email us all the documents at mail@fastlegal.in
We will apply your Licence application
Fastlegal provide Drug Licence Registeration services in Rajasthan, Place your request below or call us at 9782280098
This article will be discussing the procedure required for starting the photography business in India
The photography business is gaining popularity among the people in India as the market is sitting among the digital community and in digital space, you know the important aspects to show your product is a photos videos so the increase for the photographers for videographers have increased significantly in the recent years
If you are passionate in the photography e is the perfect business you can have right now
Here is how you can start , register and manage your photography business
Decide what type of photography you will do
The first thing you need to do is to decide the what type of photography you will do the photography can be different types like for a real estate developer it can be the photography of real estate products portfolio you can also carry on a photography for royal wedding can carry on photography business for a Photoshop and I will different websites as well
You can also do the photography for products that are sold on eCommerce platforms, photography can be done for nature for tourism and many other things it is very important to focus on what you are choosing initially and you can explain your project portfolio further.
Making a business plan
the next thing you have to do is to make a proper business plan for your photography Business business plan you need to take consideration of all the aspects that are required at movement and also how the future implications in a technological changes could be taken care of
In business plan you need to consider all the aspects that you business has to follow like a how you will market your business what marketing strategies you will follow for promoting your business online you can take care of Instagram and other social media marketing platforms for initially promoting your business and once you make the sales you can go with a period as well you need to decide the geographic for your business where you can operate and you should target the perfect audience on that.
Now you have to decide the pricing plan for your portfolio they take how much you will charge for doing things you love for per day basis for project basis of things will work for you.
Start your own website
Now just buy a domain name from domain service provider and create a simple wordpress website with full portfolio photos that you already shooted this will help you to gain access to prospective clients and create your brand identity
Create a website you need to have your own business logo, you can tell help of the online logo maker like canva.com and other alternatives.
Register your business
Now what you have to do is to register your photography business legally in India registration of photography business is same as doing any other business and does not require many formalities you can start with sole proprietorship business if you are a single individual, you can also start a one-person company
Photography business is of more than two or more individuals then you can go with a partnership or private limited company registration
If you are going to pitch the corporate clients it is advisable to go with a private limited company registration as it provides more credibility among your prospective clients.
Documents Required for photography business registration in India
PAN Card
Aadhar Card
Bank Statement with current address
Mobile No
Email id
Electricity Bill of office address
Rent Agreement, if rented
NOC from Owner
please note that your home address can also be your business address so you can start your business from your home address also
Getting the first client for your photography business
First client for your photography business only say for every business is the most important aspect because ultimately the clients are only people who provides sales to your business so start promoting your fishes online among the large part of your audience you can take help of digital marketing by doing the Facebook ads or Instagram ads, for doing all your digital marketing activities you can hire the digital marketing people available on Profit sharing basis as well this will help you to to get good amount of clients with less risk
Regularly you will be getting a good portfolio and you will start getting automatically will help you to generate regular flow of Business and you can now hire another people for your business with you and scale as much as you can.
Issuing of first sales invoice
Now once the client is finalized you can offer him to issue the sales invoice and get the payment, it is advisable to get the sales invoice formatted rightly has per the Indian laws, you can take help of the invoicing software available online and make a profile of your business and issue the first sales invoice
Filing of company returns
If you register your business online as a private limited company then you need to file regular compliance returns for your company as per Indian companies act, filing of returns are mandatory and non filing can lead to you very high amount of penalties so you need to regularly get in touch with your legal advisor who handles your business filings.
Please be noted that even if your sales and purchases are NIL, you are required to file your business returns in mandatory.
Filing of GST returns
You are registered under the GST then you are required to file the GST returns regularly, non-filing of GST returns attracts penalties and you can consult with your legal advisor for your business.
How to take the help of the Fast legal team for carrying on your legal filings and business registration formalities.
Filing of income tax returns
Every business needs to file their own income tax return beside company and GST returns and under income tax you have to pay the taxes on the profit earned on your business
Is always advisable to take help of a chartered accountants or other tax practitioner for filing of your income tax returns online.
Fastlegal provides income tax return filing services for your business you can take help of fastlegal team members
In the Recent Notification dated 22nd Jan, 2019 Ministry of Corporate Affairs has mandated every Company to Report outstanding and Advances to MCA in E Form DPT-3 within 90 days of this notification.
The MCA has amended the existing deposit rules in which MCA has clarified that that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than Government company.
Who is Required to File Form DPT-3
Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits,
in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified
in Form DPT-3
within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014
Every Company : Means Every company whether Private Company, Public Company, Small Company, OPC, Nidhi Company etc
What Information to be provided in Form DPT-3 for Amounts which are not considered as Deposits:-
Any amount received from or as Loan or Financial Assistance –
the Central Government; or
a State Government; or any amount received from any other source whose repayment is guaranteed by the Central Government or State Government; or
any amount received from a local authority; or
any amount received from statutory authority constituted under an Act of Parliament or a State Legislature.
Foreign Governments
Foreign or international banks
Multilateral financial institutions
Foreign Governments owned development financial institutions;
Foreign export credit agencies
Foreign collaborators
Foreign body corporate
Foreign citizens
Foreign authorities
Persons residents outside India subject to the provisions of Foreign Exchange Management Act, 1999 (42 of 1999)
A loan or facility from any banking company
From the state Bank of India or any of its subsidiary banks
From a banking institution notified by the Central Government under section 51 of the Banking Regulation Act
A corresponding new bank as defined in clause( d )of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or
From a cooperative bank as defined in clause (b-ii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)
Public Financial Institutions notified by the Central Government;or
Any regional financial institutions
Insurance companies; or
Scheduled Banks as defined in the Reserve Bank of India Act,1934(2 of 1934).
Any amount received against issue of commercial paper or any other instruments issued in accordance with the guidelines or notification issued by the Reserve Bank of India
Any amount received by the company from any other company
Any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription to any securities including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment of securities applied for
Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or the relative of the director of a private company
Any amount raised by the issue of bonds or debentures secured by a first charge or a charge ranking pari passu with the first charge on any assets referred to in Schedule III of the Act excluding intangible assets of the company
Any amount raised by the issue of non-convertible debentures not constituting a charge on the assets of the company and listed on recognized stock exchange as per applicable regulations made by Securities and Exchange Board of India
Any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit
Any non-interest bearing amount received and held in trust
Any amount received in course of , or for the purposes of the business of the company-
As an advance for supply of goods or provision of services accounted for in any manner whatsoever provided that such advance is appropriated against supply of goods or provision of services within a period of three hundred and sixty five days from the date of acceptance of such advance.
As advance accounted for in any manner whatsoever, received in connection with consideration for immovable property under an agreement or arrangement, provided that such advance is adjusted against such property in accordance with the terms of agreement or arrangement.
As security deposit for performance of the contract of supply of goods or provision of services
As advance received under long term projects for supply of capital goods except those covered under item (b) of subclause (xii) clause (c) of sub- rule (1) of rule (2) of the Companies (Acceptance of Deposits) Rules, 2014.
As an advance towards consideration for providing future services in the form of a warranty or maintenance contract as per written agreement, if the period for providing such services does not exceed the period prevalent as per common business practice or five years, from the date of acceptance of such service whichever is less.
As advance received and allowed by any sectoral regulator or in accordance with directions of Central or State Government.
As an advance for subscription towards publication, whether in print or electronic to be adjusted against receipt of such publications.
Any amount brought in by promoters of the company by way of unsecured loans in pursuance of the stipulation of any lending financial institution.
Any amount received by a Nidhi company in accordance with the rules made under section 406 of the Act.
Any amount received by way of subscription in respect of chit under the Chit Funds Act, 1982(4 of 1982)
Any amount received by company under any collective Investment scheme in compliance with regulations framed by the Securities and Exchange Board of India
Any amount of twenty five lakh rupees or more received by a start up company, by way of convertible note (convertible into equity shares or repayable within a period not exceeding five years from the date of issue) in a single tranche, from a person
Any amount received by a company from –
Alternate Investment Funds
Domestic venture Capital Funds
Infrastructure Investments Trusts
Real Estate Investment Trusts
Mutual Funds registered with the Securities and Exchange Board of India.
In all the above cases which are not considered as Deposit , Specific Amount with each case is required to Reported in the E form.
What if company does not have any amount that is required to be reported ?
In this case company is not required to file Form DPT-3
Is DPT-3 is One Time Return or to be Filed Every Year :
Non Deposit Amounts are to be Reported One Time Only
A Share Certificate is a legal document which is issued by a private limited company in India to its shareholders in which the number of shares owned by them is mentioned. It is a legal document which serves as a proof of ownership of shares in the company and acts as a primary evidence of the same. It is usually signed by the company’s authorised signatory and the company’s seal is affixed on it. It is a crucial document which is required whenever the shareholder wishes to transfer or sell the shares.
Any Person who has vacant or un utilized land may choose to setup warehosue in Rajasthan and get rental Income through renting of warehouse. Further Central Government provides subsidy on Project cost for setting up warehouse in Rajasthan. Subsidy are provided through NABARD ( National Bank for Agriculture and Rural Development).
Following are details of Subsidy provided by NABARD:
How Much Subsidy is Provided by NABARD for setting up warehouse
If the Applicants applying for Subsidy are :
Women/Farmer/SC/ST Category : 33.33% of Project Cost
Others : 25% of Project Cost
Minimum Owner Contribution of Project Cost Required
The Applicant or Owner who is applying for subsidy for setting up warehouse must contribute minimum 20% of Project Cost of warehouse.
What is Project Cost
Project Cost means Cost Involved in Construction of warehouse and also Includes :
Cost of Boundry Walls
Cost of Internal Roads
Cost of Internal Drainage System
Cost of Weighing Kanta
Cost of Fire Fighting Equipments Etc.
Cost of Land (Maximum 10% )
How Much Loan is required from Banks
Applicants Getting benefits of Subsidy under this scheme, must require to obtain minimum 50% Loan from Banks of Project Cost.
Nidhi Company is registered as Public Limited Company in India, Nidhi Company is Finance Company that deals with its members – Accept deposit from its members and provide loans to its members.
For Registration of Nidhi Company Following information and documents are required :
Minimum 7 Members are required
Minimum 3 Director are required , Please note that Director should also be member of Nidhi Company
Minimum Paid up Capital and Authorized Share Capital at the time of Registration should be Rs. 5 Lakh
Mobile No and Email id of Members and Directors
PAN Card Copy of all the Members and Directors
Aadhar Card Copy of all the Members and Directors
Bank Statement copy with Address and not older than 2 months
Photo – Passport Size
Duly Signed Digital Signature Form
Video for Digital Signature (20 Sec) of all the Members
Office Address
Office Address Electricity Bill, Rent Agreement, if rented and NOC from Owner
Procedure for Registration of Nidhi Company –
Signing of Incorporation Documents – Form DIR-2, INC-9 , Declaration for Compliance of Nidhi Rules , 2014
Now Application is required to be submitted to CRC online with Incorporation forms along with required fee
CRC review the application and if found any issue , sent it for re submission. Other Company gets Incorporated
Resubmit the Application
Approval of Application
Certificate of Registration/PAN/TAN is issued to Company
Filing of Form INC 22 for Office address , if you have given Communication address while Incorporation of Company than you are required to file Form INC22 for Office address within 30 days of Registration of Company
Opening of Bank Account of Nidhi Company :
Once the Company is Incorporated, you are required to open a Bank Account of Company with Bank of your Choice and Deposit the subscription amount to Bank .
Filing of Form INC 20A for Business Commencement
Filing of Form ADT-1 for Auditor Appointment of the Company
In the Union Budget for FY 22-23, the government of India announced provisions related to Taxation of Cryptocurrency as Virtual Digital Assets, earlier to this there was no provisions for taxation of Cryptocurrency and as General practice, most the Taxpayers are declaring their income either as Trading business or if brought as an investment perspective than as Capital Assets, Short Term or Long Term Capital Gain provisions are been followed by many Industry Experts. In this article, we will discuss provisions related to the Taxation of Crypto as Digital Virtual Digital Assets.
Meaning of Virtual Digital Assets
“Virtual Digital Asset” Means––
(A) Any Information Or Code Or Number Or Token (Not Being Indian Currency Or Foreign Currency), Generated Through Cryptographic Means Or Otherwise, By Whatever Name Called, Providing A Digital Representation Of Value Exchanged With Or Without Consideration, With The Promise Or Representation Of Having Inherent Value, Or Functions As A Store Of Value Or A Unit Of Account Including Its Use In Any Financial Transaction Or Investment, But Not Limited To Investment Scheme; And Can Be Transferred, Stored Or Traded Electronically;
(B) A Non-Fungible Token Or Any Other Token Of Similar Nature, By Whatever Name Called;
(C) Any Other Digital Asset, As The Central Government May, By Notification In The Official Gazette Specify: Provided That The Central Government May, By Notification In The Official Gazette, Exclude Any Digital Asset From The Definition Of Virtual Digital Asset Subject To Such Conditions As May Be Specified Therein
Tax on Crypto as Virtual Digital Assets
For Taxation of Virtual Digital Assets new Section 115BBH has been inserted in Income Tax Act
Where the total income of an assessee includes any income from the transfer of any virtual digital asset, the income-tax payable shall be the aggregate of
(a) the amount of income-tax calculated on the income from transfer of such virtual digital asset at the rate of thirty per cent and
(b) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the income referred to in clause (a).
From the above, it is clear that the minimum tax rate shall be thirty percent on any income received from Transfer of Virtual Digital Assets if your rate of tax is below thirty percent or if your rate of tax is more than thirty percent than the higher rate of tax applicable will be the rate of Tax on transfer of Virtual Digital Assets.
Deduction allowed while Calculating Income of Virtual Digital Asset
While calculating income from Virtual Digital Assets deduction in respect to Cost of Acquisition will be allowed and no other deduction will be allowed. Also, Set-off of any loss will not be allowed while calculating income from Virtual Digital Assets.
TDS on payment on Transfer of Virtual Digital Assets
A New Section 194S has been inserted in Income-tax Act for Provisions related to TDS on Virtual Digital Assets
Any person responsible for paying to a resident any sum by way of consideration for transfer of a virtual digital asset shall, at the time of credit of such sum to the account of the resident or at the time of payment of such sum by any mode, whichever is earlier, deduct an amount equal to one percent. of such sum as income-tax thereon
Further, if there is an exchange of one Virtual Digital Assets for another than the person responsible for paying such consideration shall, before releasing the consideration, ensure that tax has been paid in respect of such consideration for the transfer of virtual digital assets.
Non Applicability of TDS on specified person
TDS on Crypto is not applicable if the value or aggregate value of such consideration does not exceed fifty thousand rupees and ten thousand rupees for other than specified persons during the financial year.
“specified person” means a person,–– (a) being an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him does not exceed one crore rupees in case of business or fifty lakh rupees in case of the profession, during the financial year immediately preceding the financial year in which such virtual digital asset is transferred; (b) being an individual or a Hindu undivided family, not having any income under the head “Profits and gains of business or profession”
TDS provisions will be applicable from 01st July 2022.
