Understanding Crypto Taxation in India

As per the current Finance Act, the following rules apply to all Virtual Digital Assets (VDAs):

• Flat 30% Tax Rate: Any income derived from the transfer of VDAs is taxed at a flat rate of 30%, plus applicable surcharge and cess.
• No Deduction of Expenses: Unlike share trading, you cannot deduct any expenses (like internet, laptop, or exchange fees) from your crypto income, except for the Cost of Acquisition.
• No Loss Set-off: This is a crucial rule—loss from one crypto coin (e.g., Bitcoin) cannot be adjusted against profit from another crypto coin (e.g., Ethereum). Each transaction is viewed independently for tax purposes.
• 1% TDS (Tax Deducted at Source): A TDS of 1% is applicable on the transfer of crypto assets exceeding certain thresholds. We help you reconcile your TDS entries in Form 26AS.
• Gifting Crypto: If you receive crypto as a gift, it is taxable in the hands of the recipient as “Income from Other Sources” at market value.

Our Specialized Crypto Services

Managing crypto taxes manually can be a nightmare due to hundreds of small trades. Our group provides:

1. Comprehensive Gains Calculation: We analyze your trade history from Indian exchanges (like CoinSwitch, WazirX) and international platforms (like Binance, Bybit) to calculate your final taxable income.
2. ITR Filing for Crypto Users: Expert filing of ITR-2 or ITR-3, ensuring that crypto income is correctly reported under the “Schedule VDA.”
3. TDS Reconciliation & Refunds: Assisting in tracking the 1% TDS deducted by exchanges and ensuring it is correctly reflected in your tax credit.
4. HNI & Portfolio Advisory: For large-scale investors, we provide strategic advice on the timing of sales and the legal implications of holding crypto vs. trading.
5. Notice Management: If you receive a notice from the Income Tax Department regarding “high-value crypto transactions,” we provide professional representation and responses.

The Samyuta Compliance Checklist for Crypto

• Maintain Transaction Logs: We help you organize your trade reports, wallet addresses, and transfer history.
• Airdrops & Staking: We calculate taxes on rewards earned through staking, mining, or airdrops, which are also considered taxable income.
• P2P Transaction Tracking: Professional auditing of Peer-to-Peer (P2P) trades to ensure bank entries match your crypto activity.

Why Choose Samyuta Tax Consultancy?

• Tech-Savvy Auditors: Our team understands blockchain technology, DeFi, and how various exchanges function, making our tax calculations highly accurate.
• Updated with Latest Laws: Crypto laws in India are evolving. We stay ahead of every circular and notification to keep your investments safe.
• Confidential & Secure: We prioritize the privacy of your digital asset holdings and ensure all data shared is kept strictly confidential.
• Integrated Finance View: We look at your crypto, stocks, and business income together to give you a 360-degree tax-saving strategy.

Invest in Crypto, Stay Compliant with Samyuta!

Don’t let tax confusion stop you from exploring the future of finance. Let our experts handle the “Tax Stress” while you manage your digital portfolio.