Tax Planning for Crypto Professional & Investors

Tax planning holds immense significance in financial management, particularly for Crypto Professional & Investors. Going solo without seeking advice can lead to missed opportunities for tax savings, expensive penalties, and legal ramifications. Cryptocurrencies in India are categorized as virtual digital assets (VDAs) and are subject to taxation. Profits accrued from cryptocurrency trading are taxed at a rate of 30%, with an additional four percent cess according to Section 115BBH. Effective from July 01, 2022, Section 194S mandates a one percent Tax Deducted at Source (TDS) on crypto asset transfers if the transactions surpass Rs 50,000 (or Rs 10,000 in certain cases) within the same financial year. This crypto tax is applicable to all investors, including private individuals and businesses, involved in digital asset transfers throughout the year.

Which Cryptocurrency Transactions Are Subject To Taxation?

Optimizing Tax Savings

One main benefit of engaging in tax planning with us is the opportunity to optimize your tax savings. We excel at identifying tax-saving opportunities that most Crypto Developers, Crypto Software Professionals, and Investors are completely unaware.

Further, we help utilize tax deductions and credits effectively while ensuring the complete utilization of all available tax benefits. Additionally, drawing upon our extensive experience spanning several years and our in-depth understanding of income tax laws, regulations, court judgements and processes, we propose tax-saving strategies aimed at minimizing your tax liabilities.

Reviewing Deductions

Crypto Professionals and Investors frequently have taxes withheld at the source through

TDS (Tax Deducted at Source). Nevertheless, many individuals miscalculate TDS or fail to consider certain tax exemptions. Seeking guidance from our Chartered Accountants (CAs) can verify the accuracy of TDS deductions, preventing any overpayment. In the event of overpayment, we provide assistance in claiming refunds.

 

Selecting Between Tax Regimes

The government introduced two tax regimes for individual taxpayers in the 2020 budget - the old tax regime and the new tax regime. Under the new regime, taxpayers can access lower tax rates by relinquishing specific deductions and exemptions. Deciding which regime proves more advantageous entails a complex evaluation of factors such as income, investments, and expenses.

Here, our Chartered Accountants (CAs) play a pivotal role. They meticulously analyze your financial statements to determine the optimal tax regime for you. 

Avoiding Penalties

Errors in tax filing or missing crucial deadlines can result in substantial penalties. Our Chartered Accountants possess comprehensive knowledge of tax laws and regulations, ensuring accurate and compliant tax returns. 

Ensuring Compliance with Tax Laws

Tax laws are intricate and continuously evolving, making it challenging for individuals to stay abreast of the latest regulations. Our Chartered Accountants possess in-depth knowledge of tax laws and regulations and help you navigate legal complexities that arise during the tax planning process.

Peace of Mind

Consulting Our Chartered Accountants for tax planning offers you a peace of mind. You can trust that your taxes are filed accurately and punctually, maximizing potential tax savings. This assurance alleviates the stress associated with tax planning, allowing you to concentrate on other important facets of life.

Our Process

1. Assessment of Financial Situation & Statements: One of our Chartered Accountants will conduct a consultation session with you to evaluate your case background, financial history, and tax-related information. Subsequently, we will review your financial statements, encompassing past tax returns, cryptocurrency transactions, income sources, as well as assets and liabilities.

2. Identification of Tax-saving Opportunities: After assessing your financial statements, we identify available tax-saving avenues such as investments, deductions, exemptions, and allowances applicable to your case background.

3. Review & Discussion of Tax-saving Opportunities: After identifying Tax-saving avenues, we will discuss the Tax-saving strategies with you and craft a plan to execute the same.

Conclusion

In summary, seeking guidance from our firm for tax planning and verifying TDS deductions can prove invaluable for Crypto Professional & Investors. It facilitates maximizing tax savings, avoiding penalties, ensuring compliance with tax laws, and fostering peace of mind. We are committed to addressing all your tax planning needs.