Managing your crypto taxes in India just got a whole lot easier. ZebPay has teamed up with ClearTax to give you a smooth, effortless way to stay on top of your tax game. Enjoy smooth trade data reports, accurate tax summaries, and a hassle-free filing experience. Plus, as a ZebPay customer, you can unlock an exclusive 70% discount on ClearTax plans, giving you top-notch tax solutions at an unbeatable price. In this blog, we’ll take you through the importance of filing crypto taxes and a step-by-step guide on how to ensure a smooth tax filing experience with ClearTax.
Understanding Crypto Taxation in India
In India, the taxation of crypto assets falls under the category of Virtual Digital Assets (VDAs), a term introduced in the Union Budget 2022. Profits from the sale of VDAs, whether through trading, swapping, or spending, are taxed at 30%, plus applicable surcharge and cess. Additionally, a 1% Tax Deducted at Source (TDS) applies to more transactions, ensuring every trade is recorded within the tax framework.
While these rules may seem new, they may mark a significant step toward integrating digital assets into the formal economy. For investors, it means greater recognition of crypto as a legitimate financial asset. The key to navigating this space is accurate record-keeping, which involves tracking purchase prices, sale values, and dates of transactions. With the right knowledge and discipline, you can stay compliant while continuing to benefit from exciting opportunities the crypto market offers.
Why Filing Crypto Taxes is Important
- Staying Compliant with Law: Filing ensures you meet the legal requirements under India’s VDA taxation framework, avoiding penalties and legal disputes.
- Avoid Penalties & Interest: Non-disclosure of crypto gains can lead to hefty fines and backdated interest, impacting your finances.
- Build Financial Credibility: A clear tax record can strengthen your financial profile, useful for loan approvals or future investments.
- Peace of Mind: Proper filing removes the stress of potential audits or notices, letting you focus on your investment journey.
- Support Industry Recognition: Compliant investors contribute to the legitimacy of the crypto ecosystem, encouraging broader acceptance.
How ZebPay x ClearTax Makes it Easy
- Effortless tax calculations with automatic computation of the 30% tax on profits and 1% TDS on crypto transactions, removing the hassle of complex tax rules.
- Smart tax regime selection with instant recommendations on whether the old or new regime will maximise savings.
- Clear and visual tax insights presented through an easy-to-read graphic summary of income, deductions, exemptions, and refunds.
- Automatic deduction application where eligible deductions, such as those under Section 80C and standard deductions, are intelligently applied to minimise payable tax.
- Seamless exchange integration allows quick import of transaction history from over 25 supported crypto exchanges in just a few clicks.
- Top-grade security and compliance with robust protection of sensitive financial data while ensuring full adherence to Indian tax regulations.
Step-by-Step Guide to Filing with ClearTax
Step 1: Log in to your ClearTax account and select “Start Filing.” Link your PAN and use Prefill to automatically fetch your income details, saving time and effort.
Step 2: Click “Browse File” and upload your Form 16 so your salary and TDS information is captured instantly. Form 16 summarises your earnings and taxes paid during the year.
Step 3: Your personal details will appear prefilled. Review and update if needed. This section covers identification, contact information, address, and bank details.
Step 4: Open the “Income Sources” tab. If you didn’t upload Form 16 earlier, you can do it here. Add any other income such as capital gains, business or professional income, rental income, interest, dividends, and crypto income for a complete picture.
Step 5: Go to “Tax Savings” and review or add eligible deductions. Include popular options under Section 80C such as PPF, life insurance, and ELSS to optimise your taxable income.
Step 6: ClearTax will auto-select the appropriate ITR form based on your inputs. Check the Tax Summary for a consolidated view and note the regime recommendation that offers the best savings.
Step 7: Submit your return online, then complete e-verification by entering the OTP sent to your registered mobile number or email. This confirms the authenticity of your filing.
Step 8: To view your ITR status later, log in to the income tax e-filing portal, select “e-File,” choose “Income Tax Returns,” and click “Viewed File Returns” to see the current status.
How to Upload Your Crypto Transaction Report
- Login to Your Account – Open ZebPay and log in using your credentials.
- Access ‘Statement’ – From the menu bar on your home page, click on “Statement.”
- Choose Statement Type – Select “Consolidated Account Statement” and set your Start and End trading dates from the dashboard.
- Download & Verify – Click “Submit” to download the report, then cross-check to ensure all transactions are captured.
Conclusion
Filing crypto taxes in India doesn’t have to be complicated, and with ZebPay’s partnership with ClearTax, the process becomes smoother than ever. By combining automated calculations, smart tax regime selection, and secure integration with crypto exchanges, you can stay compliant without the stress of manual tracking or complex tax rules. This collaboration empowers investors to file with confidence while maximising savings and ensuring accuracy. Whether you are a casual trader or a seasoned investor, this streamlined approach makes tax season a breeze and keeps you focused on growing your crypto portfolio.
