Virtual Digital Assets Reporting in Tax Filing

In India, it is the time when salaried people have got their Form 16 and they have started filing their taxes for the year. This is the ideal time when the majority of salary people get their Form 16 from the employer and in idol scenario, the last day of tax filing is 31st July. This tax Filing is for the year April'2022 to March'2023 and this is how the financial year runs in India. I can see a lot of advertisements on social media by the tax filing portals and consultancy services where they are offering certain discounts on filing. They are also offering a bunch of options to choose from in which depending upon your earning bracket you can choose the plan and get it done by the experts.

Multiple forms can be used for different people depending upon their earning sources. Some of the forms are available online in the tax filing platform but still, there are a few which are not available as per my understanding and for that, it is required to go through some Excel utility and get it done. the tax filing platform has also improved a lot in the last couple of years and the government is trying to make it even more user-friendly so that people don't feel difficult while performing their tax filing through their online portal.

Tax Filing on time is recommended

As I already mentioned that the last day for this year's tax filing is 31st July but it is highly recommended not to wait for the last day. I have seen multiple times when the portal was not working smoothly during the last day of the tax filing hence it is always recommended to get it done on time to avoid any last-minute hassles. I do not know how to file the taxes but based on the experience shared by some of the known people and relatives it is one of the complicated activities that they do not feel comfortable with. Most of the people that I know are the ones who try to get these done through some consultancy because they do not want to do it by themselves so that there are no issues on the filing later.

Crypto Disclosure and Taxation

I was going through some of the articles and videos in the last couple of days and got to know that it is important for anyone to disclose the virtual assets held in the tax filing. I do not file taxes because I'm not well read and whatever I earn through my work is not falling in the tax criteria so I am not sure whether I should be doing that or not. I used to work full-time prior before the pandemic but after that things changed and now I try to do it through freelancing but my earning is not so high that put me in the taxable bracket.

I am trying to find some documents by the government or some authorized platform where more clarity is provided above the tax filing for the crypto holders. I'm not sure if there are some portals or any specific platform where I can get the exact information that is needed for everyone who is part of the crypto market. I am trying to find out something but I would appreciate it if someone from India can share if you have any knowledge about it.

I realized that whoever is trading on Crypto assets is required to file taxes if there is a profit and the applicable percentage is thirty percent which is surely high. I do not trade on crypto but still, I have no clarity that how the treatment should be done for the crypto sets so I am thinking to spend more time learning this part about taxation.

Have you filed out access for the year if you are from India and if not then how you are going to do it? Share some insight if you know because this can help many other people to learn and understand and you never know if it can help them more because it is important to know for almost everyone in this crypto market.

Thank you so much
Stay Safe

Posted Using LeoFinance Alpha