2 November 2024
Indian Crypto Investors Have 3 Days Remaining To Pay Advance Tax
According to India’s existing tax regime, the Crypt o tax has to be paid before March 31. The new regime will start on April 1.
Last month, the Indian government announced the new tax regime for Crypto for the upcoming Financial Year 2022-23. However, taxes have to be paid for the income earned during the previous year as well.
Though the government has not recognized Crypto as legal tender but they can still tax on Crypto gains. The Indian government has been taxing Crypto gains for quite a time now.
In India Crypto is still unregulated but the Income Tax Act states that all incomes are taxable. It means whether one’s income comes from legal or illegal, it is taxable.
Any profits made on Crypto before April 01, 2022, are taxable as per the following:
- Short term gains
- Business income
- Other income
The profits made in the above categories are taxed based on your tax slab.
If anyone made 2.5 lakhs total you no need to pay tax. But if you made above 10 lakhs, you fall under the 30% tax bracket. It is always recommended to pay Advance Tax on profits from Crypto.
The last day to pay Advance Tax, for the financial year 2021-22 ending on March 31 is 15th March.
If anyone’s total tax liability is 1 lakh and they pay it after March 15, they have to pay interest on the tax amount. In case anyone paid the extra tax, the Government will pay interest to them.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
Discussion
0 comments