Crypto taxation and optimization service: A few days after the introduction of a new tax regime for India’s virtual digital assets, online taxation and fintech software provider Clear (formerly Clear Tax) has announced ‘Clear Crypto Tax’ (Clear Crypto Tax). Tax) to help investors manage their crypto assets portfolio and taxes.
Help in calculating tax
The platform has been working with exchanges for an Application Programming Interface (API) that can be integrated with the exchanges and include tax-related information in a format that allows taxpayers to provide tax information for every quarter and every year. Helps to calculate and make payments.
The platform plans to tie up with all major crypto exchanges and Decentralized finance protocols/exchanges in the country to help with tax deducted at source (TDS), invoicing and GST.
GST will be levied on transaction fees, not on the value of the cryptocurrency
Crypto tax announced in the budget
For the first time, Finance Minister Nirmala Sitharaman announced to bring income from cryptocurrencies and other virtual digital assets under the tax net in the Union Budget 2022-23 presented on February 1. The Finance Minister said that now the income on transfer of cryptocurrencies or any virtual assets will be taxed at 30 percent. Transactions in virtual digital assets have increased significantly over the past few years, so this tax is justified.
Finance Minister Nirmala Sitharaman made one thing more clear that even if there is a loss on it, tax will have to be paid. At the same time, it has also been announced to levy TDS on transactions above a certain limit.
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Sending TDS information will be easy
Will also keep a watch on Clear Partner and assist exchanges in sending TDS information to the Centre.
Archit Gupta, Founder and Chief Executive, Clear said, “Historically, we had only physical assets, capital assets etc. It is designed to address the crypto tax. There are 63 million taxpayers in India and crypto exchanges have reported that the number of investors on their platforms is 10 million. We want to connect them with the digital economy, digital assets and tax related aspects.”
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