Cryptocurrency, such as Bitcoin and Ethereum, have become widely popular in India. But since cryptocurrency is not recognized as a legal tender in the country, it does not have to be declared when made or exchanged.
However, this new form of currency can prove quite costly for people who are trading and using it domestically. The reason for this is because there is no set tax structure for cryptocurrencies in India.
This article lists out the different reasons why you should start crypto tax software in India like Cost Tracking Software’s CryptoTracking Tax Report.
Cryptocurrency Is Taxable In India
The anonymity surrounding cryptocurrency makes it a good option for people to avoid detection by the government. However, people are bound to pay taxes when they gain some gains from trade or mining. So, it is imperative that people know the tax laws.
If you are making money with Bitcoin or any of its variants in India, you must report them for taxation purposes and pay crypto tax India on them. With this in mind, let’s explore the ways you can use it to report your cryptocurrency earnings and taxes.
Since cryptocurrency is not legalised, no one can force you to pay taxes on your cryptocurrency transactions. However, if you fail to declare your cryptocurrency earnings and assets, you can be charged with tax evasion and be penalised by the Indian Income Tax Department.
Introduction To Crypto Tax Software
Cryptocurrency is not legal tender in India. However, with the help of cryptocurrency tax software for India you can properly declare your Bitcoin and cryptocurrency income. These software also helps you to keep track of all your Bitcoin transactions, and generate detailed reports on them as well as export it to a .CSV file that can be easily transferred to your accountant through email or cloud storage services
These crypto tax software programs will help you to keep track of your cryptocurrency transactions and present them to your accountant in a well-ordered manner so that he or she can put them into the official tax return form. It is important that you keep a record of all transactions but also send it to your tax professional because they are specialists in this field and know how to declare these transactions as well as get them accepted by the government.
Pay Your Due Taxes on Bitcoin Gains
The Indian Income Tax Department is aware of the rise in popularity of cryptocurrency in India, and does not want people who use it to avoid paying taxes. This means that there are resources available for people who wish to pay their taxes properly on Bitcoin gains.
The problem is that not everyone can pay the tax due. This is especially true for people who are not in possession of a large amount of cash and assets already. However, there are ways you can use to get a handle on your Bitcoin gains and make sure you pay your government what it has rightfully due.
If you are searching for a crypto tax software in India then i will suggest you to check out Binocs. Binocs is one of the best crypto tax software available in the market on which you can rely.