Cryptocurrency: Millions of crypto traders are on the radar of Income Tax Department

News India Live, Digital Desk: Cryptocurrency: Remember that era, when everyone was talking about bitcoin, dosecoin and Sheeba Inu? When people’s money was doubled overnight? Many people washed their hands in this flowing Ganges and also earned a lot of money. It was all very exciting. But now another aspect of that adventure is coming out- Income tax.

If you too have made profits by putting money in crypto, but do not raise the ‘tomination’ to pay tax, then it may be that soon you will get a notice from the Income Tax Department. And this is no joke.

The government’s ‘third eye’ is all watching

You may feel how the government will know about your crypto transactions? But the truth is that now the Income Tax Department has become smarter than ever before.

• Look at bank accounts: When you took money in your bank account by selling crypto, that transaction is now in the eyes of the department.

• Data received from Exchange: All the major crypto exchanges (eg Wazirx, Coindcx) of India now give information about their users to the tax department.

• TDS net: 1% TDS cut on every crypto transaction has made the department’s work even easier. This makes them know who is buying and selling.

How much tax, and what are the rules?

Most people have made a mistake here. Tax rules on Crypto are completely different and very strict from other things:

1. Direct 30% tax: Whether your earnings are 100 rupees or 10 lakhs, you will have to pay 30% tax directly on profits. There is no slab or discount in it.

2. No loss of loss: This is the most important rule. Suppose you earned Rs 50,000 in bitcoin, but Dodgecoin lost Rs 20,000. So you will feel that you only have to pay tax on profits of Rs 30,000. but it’s not like that! You will have to pay tax on a full 50,000 profits and the loss of 20,000 is your own, there will be no deduction.

3. No discount of expenses: Apart from the cost of buying crypto, you cannot show any other expenses (eg- internet bill, electricity).

What do we do now?

If you have not paid tax, then work wisely instead of fear. You can still rectify your mistake by filing ‘updated returns’ (ITR-U). In this, you will have to pay some fine and interest with tax, but this is a way to avoid the action of the department.

Remember, Crypto’s thrill is its place, but following the law of the country is more important than that.

The pain of the life of the evergreen line, knowing that your eyes will also become moist