Introduced in Budget 2022, crypto tax is a new concept for many investors. Filing taxes for cryptocurrency transactions can be complex. The lack of clear guidelines, frequent changes in tax laws, and difficulty tracking numerous transactions across different platforms contribute to this complexity.
However, Mudrex users now have a reliable solution. In partnership with ClearTax, a leading tax filing platform, Mudrex aims to simplify the process of reporting cryptocurrency-related taxes.
With the ClearTax portal, you can import data from Mudrex to calculate your crypto taxes directly.
This blog will look at how Mudrex users can easily file Crypto taxes.
Step-by-Step Guide to Filing Income Tax Return on ClearTax
1. Visit ClearTax and click on the ITR Filing or Get Started tab and Sign Up/Log in.
2. Select Complete E-filing from the dashboard.
3. Enter your PAN and DOB to register it.
4. Verify your details through an OTP sent to your registered mobile number.
5. Upload your Form 16. You can upload multiple Form 16s if needed.
7. Fill in your details. If you use the pre-fill option, these details will auto-populate from the IT portal.
8. In the Income Sources tab, enter income from various sources, including salary, capital gains, interest, dividends, house property, etc.
- If you uploaded Form 16 earlier, update the other income heads.
- If you used pre-fill, income from interest, dividends, etc., will be auto-populated.
9. Update Income from Capital Gains: To update income from capital gains, you can import data directly from Mudrex, use the ClearTax template, or add details manually.
Crypto Tax in India: A Breakdown
- Flat 30% Tax on Gains: Profits from selling, swapping, or using cryptocurrencies are taxed at a flat rate of 30%. This applies regardless of how long you hold the cryptocurrency.
- 1% TDS on Transactions: An additional 1% Tax Deducted at Source (TDS) is levied on transactions exceeding ₹50,000 (or ₹10,000 in some instances) in a financial year.
- No Offset for Losses: Losses incurred from crypto transactions cannot be used to offset gains from other income sources or carried forward to future years.
- Income Tax on Other Crypto Activities: Airdrops, mining rewards, and staking are considered income and taxed according to the individual’s applicable income tax slab rate.
- Gifting Crypto: Gifting crypto is a taxable event for the recipient, except for gifts between close relatives.
- Reporting Requirements: Crypto gains must be reported on the new Schedule VDA in the Income Tax Return for the financial year 2023-24.
READ MORE: Crypto Tax in India: Your Comprehensive Guide
Mudrex simplifies the complexities of Crypto Tax in India by partnering with ClearTax. This integration enables users to import transaction data directly into the ClearTax platform, ensuring accurate and efficient tax calculations and making it easier to comply with tax regulations and report crypto gains.
