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.

“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 per cent 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.

Besides, the budget proposed a 1 per cent 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.HUFs who are required to get their accounts audited under the I-T Act.

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