How is crypto tax calculated?
Abeer
Last Update 2 jaar geleden
After a long wait, the government has finally implemented a tax on all digital assets that will take effect from 1st April 2022. The finance minister stated that all digital assets will be taxed at a rate of 30%, with a 1% TDS charged on transactions over the 10,000 threshold limit. However, if you are a HUF or an audited individual, your threshold limit is 50,000.
For example, if you buy crypto for 20000 INR from an exchange, the first 10000 INR will be excluded from TDS because of the threshold limit, and you will be required to pay 1% TDS on the remaining 10000 INR, which is 100.
If you made a profit of 3,000 on the above transaction, you must pay 30% tax on your profit, which is 900, and you can claim your 1% TDS later when filing your taxes.
Calculating crypto taxes can be a bit difficult for people like us, and without any proper knowledge of blockchain, cryptocurrencies and taxation it can create trouble for us.
I personally use and recommend Catax - Simple Crypto Taxes, they offer crypto tax calculation service and blockchain auditing. They have years of expertise in this field and can help you out in calculating your crypto taxes. Do check it once.