Income from cryptocurrency is under the scrutiny of the Income Tax Department. Taxpayers who have not mentioned income from it in the returns are getting notices. In such cases, a penalty of 50% to 200% of the tax can be imposed. In some cases, there can be a jail term of up to 7 years. A flat 30% tax is levied on earnings from crypto. Also, any loss incurred from these transactions cannot be compensated.
How to respond to the notice…
- Check if the email is genuine or not. Emails usually come from @incometax.gov.in or @gov.in domain.
- Look for the notice in the ‘e-Proceedings’ or ‘Pending Actions’ section of the e-filing portal.
- It is important to know under which section the notice has come so that the correct reply can be prepared.
How to update old returns…
If you have not been able to show income from crypto in the return or have given wrong information, then you can file a revised return. This return can be filed 3 months before the end of the relevant assessment year or before the completion of the assessment (whichever is earlier).
If this time has passed, you can file an updated return within 48 months from the end of the relevant assessment year. Additional tax will have to be paid in this.
Most Read Articles:
- Vande Bharat Train New Update: Important news for those traveling by Vande Bharat, do not do this even by mistake after the horn sounds
- Next DA Hike Update: Dearness allowance can increase by this much percentage, know how much the salary will increase?
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
