Zebpay, one of India’s major cryptocurrency exchanges has recently announced of a new partnership with Cleartax, a massive tax e-filing agency based in India. The partnership is focused around helping crypto enthusiasts file capital gains on their digital asset revenues
India’s definitive tax guidelines.
Despite the position of India’s government not being entirely clear as to whether or not cryptocurrencies are illegal or legal, the fact that citizens must pay taxes on their crypto gains is quite certain.
It’s worth noting that back in December, Indias Income Tax (IT) department somewhat cracked down on India based digital asset exchanges in an attempt to gather appropriate Know Your Customer (KYC) information. Which generally entails customer bank accounts, addresses, and transaction information.
Through the tax departments research, it was uncovered that over $3.5 billion transactions were executed by the countries citizens throughout a period stemming just over a year. Which forced the tax department to issue reminders prompting crypto investors to pay their taxes off of crypto gains. According to the Press Trust of India, over 500,000 individuals are reported to be frequent crypto investors, tax obligated of course.
Why Indian citizens are not paying their crypto taxes.
The reason as to why many crypto investors don’t pair their taxes is due to the fact that there is no set in stone guidelines put forth by pertinent government bodies. Which, of course, creates quite a bit of confusion when it comes to paying crypto gain taxes.
And, if we combine the fact that the cryptocurrency industry is relatively new and all parties behind pertinent transactions are anonymous. Additionally, most traders don’t keep track of every single tiny transaction, which complicates things even further.
This is exactly what Cleartax and Zebpay are trying to resolve. According to Archit Gupta, founder of Clearfax, two new services will be born as a result of the partnership.
Cryptocurrency Taxation Advisory: designed to help individuals resolve cryptocurrency taxation related questions by means of expert guidance.
Tax Filing for Gains from Cryptocurrency: designed to help individuals pay their short or long-term capital gains taxes from cryptocurrency trading.
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