Crypto traders in India could end up shelling out significant tax penalties if they don’t report their gains in a timely fashion.
New legislation in the country of 1.46 billion people proposes that reporting entities must submit information regarding crypto transactions to India’s tax authority.
Gains that are reported late could garner significant tax penalties.
Reads the legislation,
“A non-filer taxpayer can file updated [income tax return (ITR)] at any time for the previous year within 48 months from the end of the relevant assessment year. The additional income-tax liability for additional income disclosed in the updated ITR in different years is as below:
(i) Ist Year (within 12 months from the end of relevant assessment year), it will be 25% of the aggregate of tax and interest payable.
(ii) 2nd Year (after expiry of 12 months from the end of relevant assessment year within 24 months from the end of relevant assessment year), it will be 50% of the aggregate of tax and interest payable.
(iii) 3rd Year (after expiry of 24 months from the end of relevant assessment year within 36 months from the end of relevant assessment year), it will be 60% of the aggregate of tax and interest payable.
(iv) 4th Year (after expiry of 36 months from the end of relevant assessment year within 48 months from the end of relevant assessment year), it will be 70% of the aggregate of tax and interest payable.”
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