Nirmala Sitharaman, India's Finance Minister, suggested taxing digital assets, which has stoked more discussion about whether cryptocurrency transactions should be allowed in India. While many have welcomed the government's move to tax virtual currencies as the first step towards recognizing them, no formal statement has been made by the government about the legality of such currencies in India. One can conclude that cryptocurrencies are unlawful, but there isn't a firm ban on them in India based on several important statements by the Governor of the Reserve Bank of India and other government spokespersons, including the nation's Finance Minister. Although unregulated, the Indian government recently executed a 30% tax on cryptocurrency earnings and a 1% tax deducted at source as part of the Union Budget 2022. What is 1% TDS on Crypto in India?A 1% TDS is charged when a crypto asset is transferred. A transfer refers to a change in ownership, not a transfer from one wallet to another. The main objective of the 1% TDS is to record transaction information and keep track of purchases of crypto assets.There are a few crucial considerations about crypto TDS: From July 1, 2022, onwards, crypto transactions are subject to a 1% TDS.TDS on crypto assets is deducted and deposited to the Central Government. The buyer must withhold TDS when transacting using P2P platforms or overseas exchanges.In case the exchanges in India are involved in crypto transaction, TDS needs to be deducted by the exchanges.When trading one cryptocurrency for another, a TDS of 1% will be charged to both the buyer and the seller.However, if the total value of cryptocurrency trading activities does not reach Rs 50,000 in a financial year, the individual won’t be required to pay any TDS.How is TDS in Crypto Transaction Calculated in India?As per Section 2(47A) of the Income Tax Act, Virtual Digital Assets (VDAs) effectively includes all crypto assets, such as NFTs, cryptocurrencies, tokens, etc.While announcing the 2022 Union Budget, Finance Minister Nirmala Sitharaman introduced Section 115BBH, as per which there is a 30% tax applicable on gains obtained from trading cryptocurrencies on or after April 1, 2022. Private investors, professional traders, and anyone involved with digital asset transactions during a particular, fiscal year are subject to the tax rate.Moreover, cryptocurrency transactions are subject to other taxes besides the 30% levy.

As per the Income Tax Act of 1961, the annual income and profits of individuals and businesses are subject to income tax. It is typically applied to the net taxable income of an individual or organisation for the relevant financial or fiscal year, which begins on 1 April and ends on 31 March of the next calendar year.If you are one of the taxpayers, you must be aware that today, taxpayers can use Internet banking or online payment facilities through authorised banks. To ensure the payment of taxes on time and without any hitch, check out the list of authorised banks for income tax payments. Authorised Banks That Offer e-Pay Tax ServicesThe following is the list of income tax payment authorised banks.Authorised BanksAxis BankBandhan BankBank of BarodaBank of IndiaBank of MaharashtraCanara BankCentral Bank of IndiaCity Union BankDCB BankFederal BankHDFC BankICICI BankIDBI BankIndian BankIndian Overseas BankIndusInd BankJammu & Kashmir BankKarur Vysya BankKotak Mahindra BankKarnataka BankPunjab National BankPunjab & Sind BankRBL BankState Bank of IndiaSouth Indian BankUCO BankUnion BankDhanlaxmi BankIDFC First BankTamilnad Mercantile Bank LimitedEligibility To File Income Tax Returns OnlineIndia follows a progressive income tax system that places higher income earners in higher tax brackets. Any individual or entity can file Income Tax Returns (ITR). Moreover, if your income falls below the taxable limit, you can still file a nil return to take advantage of associated benefits like quick loan approval or prompt visa approval and processing.Here are the types of individuals liable to file ITR:Indian residents having an income of more than or equal to Rs 3 lakh (as per the new tax regime applicable from FY 2023-24).A firm/Cooperative Society/BOI/AOP/Local Authority/Artificial Juridical Person.Citizens aged above 80 (super senior citizens) with an annual income equal to or exceeding Rs 5 lakh.Senior citizens above 60 years with an annual income of more than or equal to Rs 3 lakh.Individuals who want to claim a refund on the excess tax deducted.Individuals having financial interest entities or assets that are located outside India.All registered companies that generate income.Indian residents have the signing authority of any account outside India.Apart from this, you must hold an account in any of the banks on the list of banks for income tax payment.

Cryptocurrency is a type of digital currency that uses encryption methods to oversee the creation of currency units and ensure the safe transfer of funds. The key difference between traditional currency and cryptocurrency is that the latter is decentralised, meaning it operates without the backing of a central body like a government or financial institution. Rather, cryptocurrencies rely on blockchain technology to keep a transparent and secure record of all transactions.As the use of cryptocurrencies has become more widespread, tax authorities worldwide have begun to take notice and are seeking to regulate these transactions.What Is Crypto Tax?Crypto tax pertains to the tax obligations of individuals and businesses for their cryptocurrency-related transactions and profits. This refers to the amount of tax that must be paid to the government or tax authority for income earned through cryptocurrencies.Cryptocurrencies, such as Bitcoin and Ethereum, are typically treated as property for tax purposes in most countries. Any profits or losses from buying, selling, or exchanging cryptocurrency may be subject to capital gains tax.The specific tax requirements and rates for cryptocurrency transactions can vary depending on the jurisdiction.

What Are Merchant Category Codes (MCCs)?Merchant Category Codes (MCCs) are four-digit codes issued by credit card issuers (Visa, Mastercard, etc.) or by businesses to merchants according to the goods or services they offer. MCCs assist banks, credit card issuers, and financial institutions in monitoring transactions and assessing rewards, fees, and tax obligations.Examples Of Merchant Category Codes (MCCs)5411: Grocery Stores & Supermarkets5812: Restaurants & Eating Places5541: Gas Stations4812: Telecommunication Services7311: Advertising Services7399: Business ServicesWhat Is Merchant Category Code Used For?Credit Card Rewards & Cashbacks: Dictates qualification for category-based cashback or bonus points.Interchange Fees Calculation: Assists payment networks in determining processing fees for various merchant categories.Fraud Prevention & Security: Assists in flagging high-risk transactions and averting misuse.Tax Reporting & Compliance: Companies utilise MCCs to classify transactions for tax deductions and reporting.Benefits Of Merchant Category CodesEnhanced Transaction Classification: Facilitates financial institutions and companies to categorise purchases accurately.More brilliant Consumer Rewards Programs: Card issuers can provide cashback and discounts based on categories.Fraud Detection Enhancement: Facilitates monitoring of fraud transactions in a particular industry.Expense Reporting: Companies can monitor and control expenses easily.Key TakeawaysMerchant Category Codes (MCCs) are four-digit codes that categorize businesses on the basis of services offered. MCCs assist in tracking purchases, credit card reward schemes, fraud protection, fee calculation, and tax reporting, which is also useful for businesses and consumers..

What Is Front Running?Front running is a dishonest trading tactic in which a broker, trader, or financial institution trades based on prior, non-public knowledge of a large order from a customer that is to be placed shortly. This enables the trader to gain from price movements before executing the client's trade.How Front Running Works?A broker or trader discovers a large impending trade (e.g., a large buy order by an institutional investor).They order first for themselves, knowing that the big trade will push the price up.The big trade goes through, sending the price up.Front-runner sells at a profit, profiting from the price action triggered by the client's order.Why Is Front Running Illegal?Market Unfairness: Provides an unfair advantage to insiders.Fiduciary Duty Breach: Brokers must take the client's interest ahead of personal profits.Manipulates Market Prices: Generates false demand and skews stock prices.Regulatory Consequences: Regulators such as SEBI punish culprits with fines, bans, and legal proceedings.Key TakeawaysFront-running is a fraudulent and illegal trade of securities where brokers or traders act on non-public information about large, impending trades to execute their trade first to benefit from price movement. This wrongful profit erodes market integrity, violates the fiduciary owed to the client, and manipulates the price of the shares, leading to heavy penalties from regulators such as SEBI..

What Is Cash Book?A Cash Book is a book of account that chronologically documents all cash transactions, such as cash receipts and payments, is both a ledger and a magazine, supplying correct coins flow monitoring and monetary transparency.Structure And Function Of Cash BookStructure: A cash ebook normally uses a double get admission to tool to tune every Debit (Cash Receipts) and Credit (Payments). It’s all about the actual coins that’s coming in and going out of the employer.Function: The cash book gives as an online device that logs cash transactions, recognises the opportunity for mistakes, and acts as a reliable supply for audits and monetary choice-making.Types Of Cash BookSingle Column Cash Book:  This is one of the most effective statistics of cash transactions.Double Column Cash Book: you’ll discover each cash and financial institution transaction documented.Triple Column Cash Book: Cash, bank and discount transactions are kept. Petty Cash Book: Records small, recurring expenditures. Benefits Of Keeping Cash Book Accuracy: The cash book helps in ensuring errors do not happen in cash transactions. Cash Control: It provides real-time information about cash movement. Audit: This record is accurate for auditing. Minimised Errors: It helps to minimise errors with cash management.Saves Time: Does away with double journal and ledger entries.Key TakeawaysA Cash Book is an accounting journal that records all the cash transactions and acts as a ledger and a journal to keep a correct cash flow record. It is both a debit (receipts) and a credit (payments) side to provide real-time monitoring and reduce errors. It comes in four forms: Single Column (cash only), Double Column (cash and bank), Triple Column (cash, bank, and discounts), and Petty Cash Book (minor expenditures). Keeping a cash book helps in accuracy, enhances financial control, facilitates easier auditing, lessens errors, and saves time by avoiding independent journal and ledger entries..

What Is Capital Loss?Capital Loss occurs when assets like stocks, mutual funds, property, or business assets are sold for a price lower than the acquisition cost. It is a monetary loss that can be used to offset tax by balancing capital gains.How To Calculate Capital Loss?The capital loss can be calculated by using the below formulae,Capital Loss = Purchase Price − Selling PriceAccounting For Capital LossesIn Personal Finance: Utilized for tax deductions by balancing capital gains.In Business Accounting: Shown as a loss in financial records.Short-term Capital Loss: From assets less than 1 year.Long-term Capital Loss: From assets that are more significant than 1 year.Advantages Of Recognizing Capital LossesTax Advantages: Reduces taxable income and offsets capital gains.Portfolio Rebalancing: Allows investors to sell performing assets.Loss Carryforward: Unused losses can be carried forward to subsequent tax years.Improved Financial Planning: Enables businesses and individuals to maximise tax liabilities.Key TakeawaysA capital loss occurs when a property is sold at a price lower than its purchase price. It may be short-term or long-term and can be used to counterbalance capital gains to yield tax advantages. Capital losses help reduce taxable income, optimise investment portfolios, and maximise financial planning. Businesses and individuals can even use unused losses to advance upcoming years of taxation for better tax management..

What Is Financial Literacy?Financial literacy is the knowledge and skill to manage personal finances effectively. It comprises budgeting, saving, investing, managing debt, and money decision-making skills to achieve financial stability and security. Components Of Financial LiteracyBudgeting: Managing income and outgo to achieve financial stability and avoid unnecessary expenditures.Debt Management: Learning credit score rating, loans, hobby spending, and compensation methods to prevent financial burdens.Retirement Planning: Saving for the future by investing in pension schemes, 401(k) plans, or other retirement savings options.Tax Awareness: Familiarity with tax obligations, deductions, and lawful strategies to reduce tax liabilities lawfully.Benefits Of Financial LiteracyPrevents Financial Struggles:  Helps keep away from excessive debt and financial crises.Promotes Intelligent Investments: Assists in decision-making towards the accumulation of wealth.Boosts Retirement Security: Provides a secure future through forward thinking.Strengthens Economic Stability: Helps in formation of a responsible economic society.Key TakeawaysFinancial literacy is needed in effective management of cash, budgeting, saving, creating an investment plan, borrowing, retirement planning, taxes, and insurance. Financial knowledge avoids money problems, leads to smart investment, ensures retirement security, and increases financial stability, enabling wise financial decisions..

Technology has brought in the most dramatic change in the banking industry in hundreds of years, altering how banks communicate with their customers and even with one another. The shape of existing retail banks is changing, owing to competition from fast, focused digital newcomers eating into revenue streams.You may have heard the term “digital banking” whether you are a banker, an online shopper, a tech-savvy user, or even a frequent bank customer.Digital banking services are those that a consumer can use on any internet-connected device, smartphone, or tablet. This method of consumer banking is much superior to going to a bank.People have benefited from many convenient features and options provided by digital banking. The following are the top five features:1. Online bankingThe online banking feature allows you to bank whenever and wherever you want.Except for the time required for website maintenance, website services for internet banking are available 24 hours a day, seven days a week throughout the year.Most banks that offer online banking offer a variety of high-quality, technological solutions to make your banking experience simple and fast.With a few exceptions, most online banking platforms provide the same basic functionality, and the majority of these services are offered free of charge to customers.2.

With a total market capitalisation of more than $900 billion, the cryptocurrency space has attracted the attention of several investors, including those seeking quick cash with few regulations. ICOs are a highly popular method of raising money in this space.Investors are drawn to ICOs for their dream of grabbing an early to successful crypto. As of April 2018, ICOs raised a whopping USD 5,014,952,132. Here’s more about ICO.What is an ICO?An ICO or initial coin offering is an event where an organisation sells new crypto to raise money. In exchange for their financial contributions, investors receive cryptocurrency. In several ways, an ICO is the crypto version of an IPO (initial public offering) in the stock market.Working of an ICOWhen an organisation decides to launch an ICO, it declares the rules, date, and purchase procedure in advance.