Crypto Accounting India | Crypto Taxation India | Crypto Accountant

Crypto Accounting India (21)

Crypto Accounting India: Cryptocurrency accounting is essential, especially for correctly calculating taxes on your cryptocurrency trading and investments. Cryptocurrency is a type of digital currency that is based on cryptography. Cryptocurrency uses cryptography for security, making it difficult to counterfeit. Though Bitcoins and other cyber-currencies are used worldwide, some of the guidelines that the United States government put in place are very useful. Crypto Accounting India is lagging behind at this point and traditional accounting softwares such as Tally, Zoho Books cannot handle it. It's a new cyber world that we live in, one where virtual currency exists to exchange and pay for things globally. Certainly, this throws a whole new twist to accounting platforms and raises a few questions. How is cryptocurrency handled by a bookkeeper, and just what in the world is it anyway? In no way are Bitcoins the only cryptocurrency floating around on the Internet; in fact, there are thousands of other cyber-currencies, like Ripple, Doge, Unocoin to Hashcoin, even Beertoken. However, Bitcoins are the most frequently used form of this new digital money, so we'll focus on it and how to handle accounting functions that involve them. What are Bitcoins / Crypto? Bitcoins / Crypto's are electronic currency -- digital public money -- and are created using complex mathematical equations, while being policed by millions of users called 'miners'. Basically, they are long strings of computer code that have a cash value, and completely bypass traditional banks. They are very controversial because they are unregulated and banks, governments and law enforcement agencies have not figured out what to do about them. At this point, Bitcoins / Crypto are passed from one online wallet to another, and stored on a computer, smartphone, or in the cloud. Since banks are not needed to move the money or to store it, they are more like gold nuggets than real money. They have an assigned value at the time of purchase; for instance, as we were writing this, the price is about $32578 per Bitcoin, down considerably in the last few days. Accounting for Bitcoin / Crypto Accounting for Bitcoins / Crypto might seem a little confusing at first. Again, we can look at some guidelines that the US has put in place to deal with them for direction: For federal tax purposes, Bitcoins and other cryptocurrency is considered capital asset. Tax principles that apply to property apply to them. Cryptocurrency is NOT treated as currency to determine losses or gains under tax laws. Taxpayers MUST include the fair market value of the virtual currency as taxable income when it is used to pay for goods or services. The fair market value is determined as of the date acquired; basically it is (virtually) exchanged for U.S. dollars or Indian Rupee for tax purposes. A taxpayer can have a virtual loss or gain; for instance, if they bought the Bitcoins when they were at their peak of $1000 or so, they would have a loss. Accounting services simply need to keep in mind that for regulatory compliance when accepting Bitcoins as income, they must choose a valuation strategy, and reduce by business expenses throughout the year. Of course, the most important accounting practice is to record the value of the cryptocurrency at the time you receive it, and at the time you “spend” it. In this way, you can accurately calculate gains and losses. CMS Meta Keywords: how to pay tax on cryptocurrency in india,crypto tax calculator india,income tax on cryptocurrency,income tax on bitcoin india 2020,is cryptocurrency legal in india 2020,taxation of cryptocurrency,cryptocurrency trading in india,how to calculate tax on cryptocurrency,bitcoin,dogecoin,litecoin,bitcoin cash,monero,dash,coinbase,binance,tesla inc,square,microstrat,gemini,zanmai labs pvt ltd,zeb it service pvt ltd,primestack pte ltd,buyucoin,income tax on cryptocurrency,is cryptocurrency legal in india 2020,taxation of cryptocurrency,is cryptocurrency legal in india 2021,gst on cryptocurrency in india,crypto tax calculator india,is cryptocurrency taxable in india,how to pay taxes for cryptocurrency,how much tax for cryptocurrency,how is cryptocurrency taxed

Cryptocurrency bill India is ready, awaiting cabinet clearance

Cryptocurrency bill India is ready, awaiting cabinet clearance. The Union Cabinet is soon expected to take up a bill to regulate cryptocurrency and its growing market in India, Finance Minister Nirmala Sitharaman said on August 16. "Cabinet note is ready on cryptocurrency bill. I am awaiting…

Indian Bank stopping customers from investing in crypto overseas

Indian bank bars customers from investing in crypto overseas using RBI’s remittance system. ICICI Bank, one of the largest private sector bank in the country has updated its remittance form requiring clients to explicitly declare that they will not use foreign remittances to buy digital…