Outlook Money
Crypto investors must ensure accurate tax reporting to avoid penalties and compliance issues.
Wrong ITR Form- Selecting the wrong ITR can result in improper reporting and tax concerns. One must select the correct ITR form based on how income from cryptocurrency is classified whether it falls under capital gains or business incorrectly.
TDS deductions have been imposed on all trades since July 1, 2022. One needs to be careful not to omit these details, as it can lead to unexpected tax obligations and disparities in the reported income.
Crypto units received as gifts or airdrops are not tax deductible and must be declared as income, so a crypto investor must reveal these profits as failing to it can result in investigation or sanctions.
Losses from crypto must not be put as offset against any other types of income like salary or rental income.