File ITR for Crypto Income
Crypto is a “virtual digital asset” that functions with the help of blockchain technology. It is a decentralized currency means that the cryptocurrencies are not centralized by any banks, financial institutions, or central authorities. In recent times, the use of cryptocurrency has grown multifold therefore, worldwide governments have tightened their grip on the taxability to promote transparency.
In budget 2022, the government announced that the capital gains from the sale of crypto are taxed at the rate of 30%. It also attracts cess at 4% and additional TDS is also deducted at the rate of 1%.
Losses from the sale of any digital assets cannot be set off against any other digital or non-digital asset or carried forward.
The deductions are allowed under the taxation in case of digital assets whether transferring or receiving. The recipient of gifts in the form of digital assets bears the responsibility to pay the applicable taxes.
There is no tax relief or exemptions for crypto dealers based on the holding period. Whether an investor keeps the digital asset for the long term or the short term, the tax rates remain the same.
Document Needed to File ITR for Crypto Income
- PAN
- Previous year’s acknowledgment copies of income tax returns
- TDS certificates
- Sale and purchase transaction details made in cryptocurrency
How to File Your ITR?
- After Taxpayers have logged in to our platform, give us additional primary information so that we can know your requirements better
- Then you have to provide us with all the documents required for the particular service (as mentioned above in the article)
- Now it is time to pay the service fee, which is auto-calculated based on the questions we asked you earlier
- As soon as the payment is made, TaxDunia assigns an expert to the client
- The expert evaluates the documents and starts the procedure on the respective government portal on behalf of the client
- If any specific documents are required later, the expert will communicate with you directly
- Based on the complexity of the task, the government sends approval for the aforesaid service
Our team is available from 10 AM to 7 PM on working days (Monday to Saturday), except public holidays. The expert is not responsible for the authorities’ judgment.
We keep the client informed about the current updates to make the procedures transparent. Credibility and confidentiality matter to us. Today is the most suitable day to start with TaxDunia.
