Crypto traders in India could ultimately be able to shoot considerable tax penalties if they do not report their profit in time.
New legislation in the country of 1.46 billion people suggests that reporting entities must submit information about crypto transactions at the Tax Authority of India.
Profits that are reported late can produce considerable tax penalties.
Reads the legislation,
“A non-filer taxpayer can submit updated [income tax return (ITR)] At any time before the previous year within 48 months after the end of the relevant assessment year. The additional income tax liability for extra income that has been announced in the updated ITR in different years is, as below:
(i) Ist year (within 12 months after the end of the relevant assessment year), it will be 25% of the total of the tax and interest to be paid.
(ii) 2nd year (after the expiry of 12 months from the end of the relevant assessment year within 24 months after the end of the relevant assessment year), it will be 50% of the total tax and the interest to be paid.
(iii) 3rd year (after the expiry of 24 months from the end of the relevant assessment year within 36 months after the end of the relevant assessment year), it will be 60% of the total tax and the affordable interest.
(iv) 4th year (after the expiry of 36 months from the end of the relevant assessment year within 48 months from the end of the relevant assessment year), it will be 70% of the total tax and the interest to be paid. “
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