CRYPTOCURRENCY TAX AUDITS
Canada Revenue Agency (CRA) cracks down on tax audits: Are you at risk for HST, Crypto, or Foreign asset scrutiny?
Canada Revenue Agency (CRA) audits are increasing, focusing on key areas like HST builder audits, foreign exchange gains, offshore assets, cryptocurrency transactions, and the platform economy. With nearly 96,000 audits conducted last year, taxpayers need to stay compliant to avoid hefty penalties. The CRA is targeting real estate transactions, digital income sources, and undeclared foreign assets. If you’re earning from crypto, gig work, or investments, the CRA is watching. Understanding tax rules and reporting accurately can save you from trouble. Read on to learn how to stay ahead of CRA audits this tax season.
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Large Indian tech companies are rapidly hiring for jobs focused on AI safety and trust. This and more in today’s ETtech Top 5.
ITR 3 applicability: Who can file income tax return using ITR 3 form for FY2023-24
ITR 3 form applicability: Depending on the origin of your income and the type of taxpayer you are, you need to choose one of these forms when you file your income tax returns. For non-audit cases, the deadline to submit ITR 3 forms for the relevant assessment year is July 31, and for audited accounts, if applicable, the deadline is October 31.
ITR filing FY24: Have income from cryptocurrencies, NFTs, virtual digital assets? How to show it in ITR form
ITR filing: The Income-tax Act has established a fixed tax rate for the taxation of income from virtual digital assets (VDAs) such as cryptocurrencies, non-fungible tokens (NFTs), and other VDAs notified by the government. Here is a look at how to report income from cryptocurrencies, NFTs, virtual digital assets in your ITR.
How to report income from cryptocurrencies, NFTs, Virtual Digital Assets (VDA) in ITR form
Virtual Digital Assets (VDA) like Bitcoin (BTC), or other cyptocurrencies, non-fungible tokens (NFT), metaverse tokens, other similar assets are taxed at a flat 30% tax rate. Read here to find out how to calculate and pay income tax on income from VDAs.
ETtech Budget Watch: Rationalised tax regime tops gaming, cryptos’ budget ask
eGaming cos for continuation of Rs 10,000 TDS threshold, while crypto cos want a reduction in 1% TDS.
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Officers committee suggests deferment of decision on levying GST on crypto
The committee of officers comprising both from Centre and states, referred to as Fitment Committee, felt that a deeper study was needed on the issues involved in crypto ecosystem. It was decided that Haryana and Karnataka shall study all aspects and submit a paper before the Fitment Committee in due course.
CBDT notifies TDS disclosure requirements for cryptos, virtual digital assets
From July 1, tax deducted at source (TDS) of 1 per cent will be levied on payments towards virtual digital assets or cryptocurrencies beyond Rs 10,000 in a year, as the Finance Act 2022 has introduced Section 194S in the I-T Act.
Crypto industry wants govt to lower TDS on transactions
CoinDCX CEO and Co-Founder Sumit Gupta said 30 per cent tax on income from cryptocurrencies is on the higher side and should be reduced.
FAQ on taxation of crypto, virtual digital assets in works
The DEA, Revenue Department and the Reserve Bank are working to ensure that the taxation aspect is clear both for field tax offices as well as those who deal with cryptocurrencies and other virtual digital assets.
IT dept prepares to tax 30 per cent profits made on crypto transactions
The new tax regime of cryptocurrency will fall under section 285BA and sub section (k) of IT Act. Where under rule 114 E, persons are required to report the prescribed financial statements in the statement of financial transactions (SFT), any person who is liable for audit under section 44AB (Like Individuals, HUF, firms, etc.).
FinMin proposes amendments to Finance Bill; seeks to tighten norms for cryptocurrency taxation
The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. From April 1, a 30 per cent I-T plus cess and surcharges, will be levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.
Booking long term capital gains on crypto assets by March 31 may save you 10% tax
The tax rules on cryptocurrencies and other digital assets will come into effect from the new financial year, i.e., FY2022-23. However, taxation of cryptocurrency sales for the ongoing FY was not mentioned in Budget 2022. ET Wealth online spoke with chartered accountants and tax experts to find out how crypto investors can calculate their liability for FY2021-22 keeping the latest budget proposals in mind.
ICAI working on paper on cryptocurrency assets
The report will cover taxation implications, valuation and auditing of crypto and other virtual digital assets (VDAs), the premier professional accounting institute said. It will submit the report to the Centre by April end. "This (crypto) is a complex topic and we are seized of the matter," ICAI president Debashis Mitra said.
ICAI working on research paper on cryptocurrencies
ICAI President Debashis Mitra on Tuesday said the institute is working on a research paper on cryptocurrencies, which is expected to be ready in one-and-a-half months. Currently, cryptocurrencies are unregulated in the country. Mitra said once the research paper is complete, it will be submitted to the government.
Crypto mining cost not to be allowed as deduction under I-T Act: FinMin
The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. From April 1, a 30 per cent I-T plus cess and surcharges, will be levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.
India is working on crypto classification under GST law
The government is working on classification of cryptocurrency as goods or services under the GST law, so that tax can be levied on the entire value of transactions. Currently, 18 per cent Goods and Services Tax (GST) is levied only on service provided by crypto exchanges and is categorised as financial services. GST officers are of the view that cryptos, by nature, are similar to lottery, casinos, betting, gambling, horse racing, which have 28 per cent of GST on the entire value. Besides, GST at 3 per cent is levied on the entire transaction value in case of gold.
Govt working on classification of cryptocurrency under GST law
GST officers are of the view that cryptos, by nature, are similar to lottery, casinos, betting, gambling, horse racing, which have 28 per cent of GST on the entire value. Besides, GST at 3 per cent is levied on the entire transaction value in case of gold.
Crypto tax may hurt social cos with reward points, in-app buys
Going ahead, social media giants such as Meta or dating apps like Gleeden or even gaming apps could face a 1% tax deducted at source as these would be covered under the government’s broad definition of virtual digital assets.
Budget gives crypto some clarity but more importance to Digital Rupee
The government has smartly sidestepped on the legality of cryptocurrencies while showing its disinclination to support these, by levying a huge tax burden on those making money from such virtual digital assets, as the Finance Bill has tried to define it.
Next year's I-T return to have separate column for crypto income: Revenue Secy
The government will from April 1 charge a 30 per cent tax plus cess and surcharges, on such transactions in the same manner as it treats winnings from horse races or other speculative transactions. In an interview with PTI, Bajaj said gains from cryptocurrencies were always taxable and what the Budget proposed is not a new tax but providing certainty over the issue.
India's cryptocurrency sector likely to update code of conduct
An industry body made up of crypto selling platforms may appoint tax experts from Big Four audit firms for guidance, add warning labels while onboarding new customers.
Big 4 ask employees to disclose this year's crypto investments
In at least two of the firms - Deloitte and PwC - partners have been told to disclose investments as small as ?10 in such assets, said people with knowledge of the matter. The firms fear conflict of interest if partners or any of their family members have bought crypto assets, said insiders.
Top 6 stablecoins in the crypto market — what are they, how they work and why they have governments worried
Stablecoins perform an important role of being an intermediary store of value. According to some experts, the rise of stablecoins helped make other cryptocurrencies more valuable by giving traders a ‘stable’ place to put their money amid the inherent volatility of crypto markets.
From scrapping retro tax law to record GST mop-up, 2021 a year of many firsts for revenue department
With tax reforms such as faceless assessment taking roots, 2021 will go down as the year that pivoted the tax administration in a country aspiring to become the world's favourite investment destination.
Do you have to report cryptocurrency investments as foreign assets in your income tax return?
As per current laws, there is no clarity on whether crypto holdings are classified as Indian or foreign assets. In case it is the latter, then reporting these holdings in one's ITR would be needed irrespective of the income level of the investor.
How to report cryptocurrency gains, losses in income tax return
While currently, there are no specific guidance/specific tax provisions on taxation of cryptos in the Income-tax Act, 1961 (the Act), one could draw inference from the general principles of taxation. One should keep in mind that not reporting transactions in cryptocurrencies in one's ITR can lead to penal consequences, and in some cases, there could be a risk of prosecution.
Own Bitcoin? You may be required to disclose it in I-T returns
Crypto players have requested the government to make specific provisions in the Income Tax Act that would lead to individual crypto holders of more than Rs 50 lakh to declare their assets once a year.
Crypto investors may switch to peer-to-peer transfer in case of ban
Exchanges reach out to government, claim ban will trigger a spurt in illegal activities
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