Clarity on crypto tax rates in India
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I really need some clarity on crypto taxes in India. Every CA I talk to says something different, and I’m worried about getting it wrong. What are the current rates and common pitfalls I should watch out for to stay on the right side of the law this year?
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Current regulations on cryptocurrency taxation are exceptionally strict. You pay a flat 30% tax plus a 4% cess on any profits from selling or trading, and you cannot use losses to offset your gains. Additionally, a 1% TDS is deducted from every transfer, which the government uses to track your trades.
Remember to include the 18% GST on exchange fees and report everything in Schedule VDA of your ITR to avoid penalties.