Tax Season Is Here
Dear Steemians from India the tax filing season is here. We have just another day remaining before we move into the next financial year where we need to plan for our expenses and investments along with paying our dues (whether we like it or not) to the government.
Since India doesn't have a policy or regulations or framework on cryptocurrencies, it also means that there is no clear laws for taxations. Even ICAI has not been able to give any clear guidelines on the matter.
In 2017 I wrote a piece for TheQuint on crypto-taxation if you are earning or trading in cryptocurrencies. You can reference that here if you are going into audit in 2019. Infact Steem has been mentioned on TheQuint because of this. :)
I'm hoping to carry out an update to this story on Steem once I am done with my own audit in the next few weeks.
The reason I'm so particular about this is because since there is no regulation we must assure 100% compliance on our own by regulating. It is our duty as a law abiding citizen to be adhere to existing laws that mandate that if we earn any income in our bank accounts we must declare them and file our returns.
A good auditor can help you with your taxes and it's simple. As much as I dislike taxes on income as much as the next person I have been extremely diligent about filing my returns in the past decade.
I've been earning 100% in cryptocurrencies in the past few years and that has also ensured that I remain practical and realistic about this aspect of financial planning.
Ensuring regular compliance and clean books goes a long way in ensuring you have a stress free year with respect to your dealings with the IT dept as well as the government.
A solid track record of IT-returns also ensures quick availability of loans, credit cards, even travel visas as I've seen in my own case where I've been (US 10 years and EU 5 years) issued long term visas owing to a great track record of my financials.
Self-regulation is often key to ensuring a smooth financial year. I felt it important to say this out here as all of us here from India on Steem are earning in cryptocurrencies. The amounts may vary but some if not many of us are also trading in cryptos. Some of you may even be earning a part of your professional income through consulting or freelancing via crypto.
So take care to file your returns on time and save yourself of any headaches. Goodluck.
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Why You Should Vote For Firepower As Witness—Witness Campaign Post From India!
- Steem.Chat Contest #71
Even though Im not from India I would be interested to hear how your filing taxes on your steem earnings?
Are you just doing steem value beginning of year minus end of year or are you doing it some other way?
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Luckily we don't need to compute it that way. Only the income that is deposited into our bank account is taxable. Not our crypto holdings because of lack of regulations. :)
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvoting this reply.
How are you withdrawing inr to bank account these days? Asking since RBI has banned banks dealing with crypto individuals.
Through the use of peer to peer exchanges 😊
Which one do you use?
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Wazirx is good one am using that.
Same here. Mostly using Wazirx.
There are quite a few. Wazirx, Giottus, CoinDCX, Coindelta, etc. All are working well. :)
Coindelta shuts down today
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You can use Wazirx or Instashift (no kyc) there will always be someone operating in this space. Use whichever is working.
Keep up good work
I never had a thought of IT returns for crypto income ☺️ Even though the income was negligible 😁 will take the required steps
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You can account this income as per one of the ways listed in my article. The percentages and tax slabs may vary now that's all.
Thanks sir, 👍
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Wow, that article for The Quint was really nice.
So far as income tax is concerned, the days when it was used to create infrastructure and fund growth in the country will soon come to an end as, in the years ahead and with this mad race to the cesspit of socialism between the two dominant national parties, it will be used to fund Universal Basic Income to people who will deliberately want to stay poor lol. Muh 'all citizens are equal before the Government'.
Goodbye India's growth story, it was great knowing you. Sobs quietly in a corner
Is this income from cryptos count as speculative income ?
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Due to lack of any law, any speculation in cryptos i.e buying and then selling is considered as speculation and profits taxes similar to profits from stock trading in the short term/long term. This seems to be a easier way to calculate taxes on crypto trading profits.
And any income from free airdrops?
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From my reply to another commenter here.
"Only the income that is deposited into our bank account is taxable. Not our crypto holdings because of lack of regulations."
This sounds very sensible Thanks
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