Income Tax For Crypto Traders
Starting From ₹ 7,999 + Govt Fees
- Preeminent Income Tax Filing Services
- Simplify your income tax filing
- Adjust your capital gains and losses
- Ensure smoothness and transparency
- Secure, seamless, and high-quality work
Start my registration
Brand highlights
$1 Million
Raised to provide quality service to startups
5%
Market Share in Trademark Registration
Awarded
by the Indian Achievers Forum
5000+
Startups and MSMEs Served
About Income Tax For Crypto Traders
Currently, tax on crypto in india, cryptocurrency and non-fungible tokens (NFTs) are unregulated. The Reserve Bank of India attempted to ban cryptocurrencies in 2018, but the Supreme Court quashed the attempt, leaving cryptocurrencies in regulatory limbo – neither illegal nor strictly legal. The legal status of NFTs is uncertain, although they have not attracted the same level of regulatory ire as cryptocurrencies.
As a result, there is now a tax of 30% plus tax on cryptocurrency in india a surcharge and cess on the transfer of any VDA such as Bitcoin or Ethereum under the Income Tax Act, 1961 (Income Tax Act). However, the lawful position of cryptocurrencies is still vague.
Advantages of Income Tax For Crypto Traders
Allows carry forward of losses
During The First Few Years Of A Business, Most Businesses Suffer Losses. The ITR Can Be Filed To Carry Forward Business Losses Or Capital Losses For Up To Eight Years. As Well As Being Able To Adjust This Loss Against Future Income, It Can Also Be Used To Lower Taxable Income In The Future. If ITR Is Not Filed, The Taxpayer Is Denied This Benefit.
Define financial worth
The ITR Filed With The Government Specifies The Financial Worth Of The Taxpayer. The Track Of ITR Shows The Financial Capacity And Also Raises The Capital Base Of A Person. Hence, The Track Of Income And Financial Worth Is Determined By The Previously Filed ITR. Investors And Institutions Look Ahead To Returns Filed To Understand The Capacity Of The Business.
Loan Processing and high-risk cover
The Numbers And The Capital Base Specified By The Income Tax Return Are Helpful For Loan Processing. The Higher The Financial Worth, The Easier It Is To Process The Loan. The Same Is True For High-Risk Insurance. The ITR Is A Significant Document For Making Decisions In This Regard.
Income tax refund
Filing Tax Returns Is Not Just Done To Fulfill The Moral And Social Responsibility Of Every Citizen Of The Nation. If You Want To Claim An Income Tax Refund, Filing Of Income Tax Return Becomes Compulsory.
Crypto Taxes In India Process Flow
1-2 HOURS
2 WORKING DAYS
2 WORKING DAYS
2-3 WORKING DAYS
2-3 WORKING DAYS
Documents required for Income Tax For Crypto Traders
- PAN Card
- Form-16
- TDS certificates
- Interest certificates from Post Offices & Banks (if any)
- Form 26AS
- Tax-Savings Investment Proofs (if any)
- Home Loan statement from NBFC/Bank (if any)
- Capital or Crypto Gains
- Aadhar Card
Comparison
| Comparison Basis | Private limited company | Llp | Sole proprietor |
|---|---|---|---|
| Raising Fund | ✓ | ✕ | ✕ |
| Start-Up India Recognition | ✓ | ✓ | ✕ |
| Complince Cost | ✓ | ✓ | ✕ |
| Suited For | Growing Startup | Service Provider | Small Business |
| Taxation Benefit | ✓ | ✓ | ✕ |
FAQs
The General due date for filing income tax return by the assessee requiring tax audit is 30th September of the relevant financial year.
ITR-3 must be filed by individuals and HUFs who have income from carrying on a profession or from a Proprietary business.
If an Individual/HUF is having income as a partner of a partnership firm that is carrying out business/profession, he cannot file ITR-3. In such a case, he is required to file ITR 2.
XML is a type of file format. Income details entered in the XML file get easily auto-entered in the online Form ITR-4
- A return can be revised u/s 139(5) before processing by the department or before the expiry of the applicable assessment year whichever is earlier.
- While uploading the original return if the assessee failed to disclose any income or claim any deduction or he likes to change the particulars of the ITR he can do revision in his ITR by uploading the fixed return.
Yes, as per the latest government announcement, all business units and taxpayers are obliged to give their Aadhar number while filing income tax returns and also when applying for a new Permanent Account Number (PAN). Further, the taxpayers are needed to link their PAN numbers with Aadhar numbers and on a strict basis, the PAN cards which are not connected to the Aadhar Numbers will be considered invalid.
Get a Free Salah Today!
They trust us
