Accounting for Crypto transactions
In the last few years, “Crypto” has emerged as a buzzing term across the globe and that too in India. A large number of people in India are trading in cryptocurrencies like Bitcoin, Solana, Ethereum, Tether, XRP, and many more. Though crypto trading is not regulated in India it is also not illegal altogether. People are not only trying their luck on volatile coins but also on stable coins like USDT.
The Indian Government is trying to bring crypto transactions under the tax net. In this endeavor, the Government brought some major amendments through the Finance Bill 2022. The amendments brought by the said bill have the following major features relating to cryptos:
- Income Tax on crypto gains under section 115BBH without any set-off of expenditures incurred & also no set-off allowed for losses on other cryptocurrencies.
- The tax rate on crypto gains at 30% plus applicable surcharge & cess
- TDS @ 1% on consideration for transfer of a crypto asset.
Read More: Tax on Crypto Currency Transactions
These changes have made it compulsory for every crypto trader to properly account for his gain/loss on crypto trading and pay income tax on such gains while ITR filing online. But it is a well-known fact that a large number of traders are trading through a number of crypto wallets at a given point in time. It is also possible that they are buying crypto at one platform and selling it on another platform to get arbitrage gains. This makes accounting and book-keeping for crypto transactions a more confusing and tedious task.
Therefore, there is a need for a professional service where crypto traders are free from the burden of recording accounting entries of their transactions. We at “Taxwink” have developed a professional accounting system for crypto transactions where all the transactions will be recorded on a daily/ weekly/ fortnightly/ monthly basis as per the client’s requirements. Taxwink directly fetches the trading reports from the various crypto wallets maintained by the client on the basis of authorization by the client and places those reports in automated tools to fetch transaction-wise gains/ losses, inventory reports of all crypto coins, and the net profit derived by the traders.
The accounting task is not limited to just recording crypto transactions but also looking into bank transactions and also complying with TDS requirements of the client relating to crypto transactions & providing all taxation & legal compliances on a timely basis. Thus, the client can sit and relax and concentrate only on his crypto trades. If you are a crypto trader and concerned about book-keeping of your crypto transactions, you may connect at 9660930417 and get seamless accounting solutions for crypto trading.
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