Over
$3500 Million
worth cryptocurrency transactions till date
Almost
10 %
of the world’s total crypto assets held in India
Over
5,000 K
active cryptocurrency traders and investors
Upto
500 K
Income tax notices issued to cryptocurrency traders and investors
Upto
300 %
penalty for not declaring tax on cryptocurrencies
Quagmire /kwagmʌɪә/ - an awkward, complex, or hazardous situation
Crypto investors and traders have been plagued by regulatory uncertainty in India. As the Indian Government authorities continue to struggle in fundamentally differentiating. Bitcoin from Blockchain, the subcontinent's economy is positioned to lose out on, what is possibly, the century's biggest revolution.
Having added to the fear, uncertainty and doubt, is the ring-fencing notification issued by the RBI, restricting banking access to Indian crypto exchanges. Despite the speed-bump, believers of the Blockchain technology remain undeterred, thanks to which trading volumes have picked up on the Indian exchanges.
Although there isn’t any clarity in tax legislation, the Indian Revenue Authorities are breathing down the necks of crypto traders. It is, therefore, imperative to accurately compute and report any income from cryptocurrencies.
For incomes arising on any Blockchain or cryptocurrency exchange, Quagmire Consulting promises hassle free navigation through the murky waters of Income Tax. So while you invest, trade, mine, run nodes or offer Blockchain solutions, we are happy to take care of your crypto taxes for you.
There is no explicit ban on holding/trading/investing/dealing in cryptocurrencies.
The only prohibition in place is on banks, regulated by the RBI, from providing banking access/services to any individual or entity dealing in virtual currencies.
Absolutely. It is essential to declare such income in the Income Tax returns and pay tax accordingly.
While investing or trading in cryptocurrencies is not illegal, any income earned thereof on which tax is not paid would be deemed as illegitimate wealth.
Depends upon the nature of activity undertaken with cryptocurrencies. The rate of tax would differ for investors vis-à-vis traders, miners or blockchain businesses.
The Indian Income Tax Department can obtain information on persons/entities holding cryptocurrencies from various sources.
In case a person/entity is found to have evaded taxes, severe penal provisions under the Income Tax Act would become enforceable.
Yes.
In case you are an Indian Resident, all assets held outside India are required to be disclosed in the Income Tax return. Further, any income earned from such assets shall be chargeable to Income Tax in India. Failure to do so can invite severe penalties under the Black Money and Imposition of Tax Act, 2015.
Quagmire helps maintain a consolidated and up-to-date record of all transactions and incomes earned from any Blockchain or cryptocurrency exchange.
Quagmire comprehensively ascertains any and all tax liabilities, followed by assistance in completing and filing Income Tax Returns.
Yes.
A notice may be served under several circumstances including non-reporting of income, shortfall in payment of tax or non-disclosure of foreign assets/holdings.
The tax assessment notice shall need to be responded to via personal representation or a written submission.
Quagmire handles end-to-end assessment procedures. All responsibilities of corresponding with the Income Tax Department are handled, ensuring least possible inconvenience to our clients.