What is Cryptocurrency?
Cryptocurrency is a type of decentralized digital money or asset. This is completely based on blockchain technology and secured by cryptography. To understand cryptocurrency, one needs to know these terminologies– blockchain, decentralization, and cryptography. In layman’s terms, blockchain in contrast to cryptocurrency is a digital ledger, and its access is circulated among authorized users. Cryptocurrency is also called crypto. This is a kind of currency form that exists digitally or virtually. Cryptography and blockchain technology is used for your secure transactions. Cryptocurrencies don't have a central regulating authority to control their transactions, it is using a decentralized system to record transactions safely. Cryptocurrencies like Bitcoin, Dogecoin, and Shibainu have been very popular among Indian people over the past few years. A rapid interest of young teenagers and investors is seen in cryptocurrency investment, and because of this, a massive growth was seen in the crypto market. But still, there are many users or people who want to invest in crypto but are still perplexed about the new rules of taxation on cryptocurrency. Let's understand it meticulously.
How does taxation work on cryptocurrency?
Many of you have questions like this “How are my gains and losses taxed?” “How is cryptocurrency being taxed or how much tax is being charged on my cryptocurrency sale?” We have noticed all your doubts and bring an interactive, and easy-to-use calculator. This calculator will help you to get the answers to all questions related to cryptocurrency transactions and it provides an estimation of applied tax on your gains in simple ways.
Taxation on cryptocurrency in India .
From the 1st of April 2022, According to the amendments to the Finance Bill of 2022, which was presented among the Lok Sabha members, certain changes in the income tax rules are going to be applied. Mainly cryptocurrency and digital assets were targeted with tax rules in the latest amendments of the 2022 bill. Our Finance Minister Nirmala Sitharaman in the union budget stated that “ while making income transfer of digital assets shall be taxed at the 30 percent.” For example, If you had invested Rs. 2,00,000 on any cryptocurrency and sold it at 2,50,000 then you need to pay the 30 percent tax of the profit you gained on crypto which is around 50,000. All the crypto investors will have to pay 30 percent of the tax on the earned profits. New finance budget 2022 is considered by crypto holders as “Your profit is our profit, your loss is yours.” There is a huge change that has blown up in the cryptocurrency market.
1% TDS on all transactions of digital assets
The Indian Government has mandated that whether you make a profit or loss on digital assets, you must pay 1% of TDS on every transaction including cryptocurrencies. Regulations will come into force from the very 1st April of July 2022. Indian retailers reckon this provision is a big blow for them.
Gifted form of cryptocurrency to be taxed.
If Any cryptocurrency such as Bitcoin, Ethereum, litecoin, or Steller is gifted in the form of a digital asset. It would be liable for taxation as per the gift post-budget 2022.
What is a cryptocurrency calculator?
A cryptocurrency tax calculator is an online software that helps you to calculate the value of tax that is liable to pay for the gains under the crypto transactions. A cryptocurrency calculator is a very powerful tool for the investors of cryptocurrency in the market. Crypto tax calculators are used across the world by experts and investors to automate their crypto tax reporting.
How to use a cryptocurrency Tax calculator?
Firstly, You need to select the year in which you want to calculate your estimated tax. Then secondly, you are required to select your status of tax filing. Thirdly, fill in the selling and purchasing prices and click on the button “ Compute crypto tax”. Here, you must be also liable to pay the appropriate surcharge and cess over the amount of tax liability that is calculated in the cryptocurrency tax calculator.
How to calculate cryptocurrency tax?
How to calculate cryptocurrency tax? To calculate the tax is not like rocket science. You just need to subtract the cost price of the cryptocurrencies you hold from the selling price and calculate 30% of the final value. With the 30% of tax, you also need to pay an excess of 4% of the tax amount.
Who can use a cryptocurrency tax calculator?
Any individual who holds at least one or more virtual digital assets like Bitcoin, Litecoin, Ethereum, dogecoin, etc is eligible to use the cryptocurrency tax calculator. Also to be noted here is that one must be aware of the sale value and the cost of acquisition of the holding cryptocurrency.
Why should you use the Myitronline cryptocurrency tax calculator?
There are many benefits of using the Myitronline tax calculator. Major of them are given below- Myitronline’s cryptocurrency tax calculator is easy to use with a simple interface. You can operate it from your comfort zone of any place. Gain on the cryptocurrencies can be calculated in a jiff without getting perplexed in it. Myitronline’s crypto tax calculator applies all the tax provisions and provides you with the correct tax payable on cryptocurrency transactions. Myitronline cryptocurrency tax calculator lessens effort and saves your precious time with its simple and easy-to-use features. Our software lets you calculate the applied or liable tax and gain or loss on your crypto investments.