How Is Cryptocurrency Taxed? How To Calculate Tax?

Cryptocurrency Taxed

Recently, the financial budget has made a new announcement on the Cryptocurrency taxes in 2022. Government announced the new Regulations, which help people to have a better understanding of the assets. 

In the modern day, people have been widely using cryptocurrency for buying and selling in a unique manner. Choosing the right platform for trading cryptos would be a more significant option. binocs ensures accurate tax computation is executed with maintaining compliance based on the updated laws and regulations. When you are looking for buying, selling, P2P transactions or Stake then Binocs caters to all your needs. 

Complete Transparency In Trading: 

In the modern day, people have been using Binocs to easily get complete reporting on cryptocurrency holdings based on jurisdictions for users. These would automatically expand the portfolio of services based on numerous aspects. 

The platform enables unique transparency with an algorithm breaking down transaction fees as well as TDS paid on the transactions. It is a much more efficient option for calculating the Tax on the net amount even without any hassle. 

There are also a plethora of ways to import historical crypto transactions extensively, enabling the accounts to the Binocs app. These would generate the required tax reports even with the click of a button. Reports are downloaded or shared with any tax professional. These also provide the complete option to connect with the Tax filing software, which efficiently saves more time. 

Tax On Cryptos: 

Normally, the income from the sale of virtual digital assets such as NFTs, cryptocurrency and many others will be taxed at the rate of 30%. Apart from these, the deductions will be allowed for the cost of Virtual Digital Asset acquisition. There will not be any deduction carried towards the expenses like transaction fees and many others. 

Losses would not be carried forward to next year. Cryptocurrencies based on the pretext of gifts are also taxable. When an individual is eligible for Advanced Tax, then he or she is required to pay the Crypto Advanced Tax. These would extensively save more money.

Calculating The Tax On Cryptos: 

Binocs provides the best state-of-the-art security along with protecting user data. Advance Integration systems recognize duplicate transactions by correcting them automatically. How much do you have to pay taxes on crypto for the transaction is the biggest question for everyone.

These also ensure accurate values considered for transactions. It is added with more features to tag on transactions exactly. Binocs reconciles the complete transactions from multiple accounts even with zero errors.

Tax At 30% In India: 

Based on the recent regulation, all cryptocurrency gains are to be taxed at a flat rate of 30% even in the case of any income slab of an individual. When there are various income sources based on the total income of the individual, then he or she will be taxed at different tax rates for about 5%, 10%, 15% and more. The government of India has laid a flat rate of 30% for cryptocurrency transactions. When the individual buys Crypto for INR 3000 and sells it for INR 6000, then the Tax will be calculated.