Crypto tax calculation is not something that comes naturally in India, as cryptocurrencies are still in the early stages of development.
There are things that investors need to keep in mind while utilizing the software applications that have been developed to make it easy to calculate cryptocurrency taxes.
With effect from July 1, buyers of digital assets in India must pay a 1% tax on the amount due to sellers. Along with this, a flat 30 percent income tax on cryptocurrency revenues went into effect on April 1 as well.
Investors fell into two groups as a result of the government's move to tax cryptocurrency transactions.
But if you invest in cryptocurrencies, you must abide by the rules on taxes right now. Tax calculation programs like TaxCryp, Clear, KoinX, etc. have emerged to simplify matters.
How do cryptocurrency tax calculators operate?
The majority of them aim to offer exchanges and investors alike solutions. These resources aid investors in understanding their tax obligations and are supported by a skilled group of chartered accountants and tax experts.
Recommendations for selecting a crypto tax calculator
Taxing cryptocurrency is a relatively new phenomenon. As a result, it could be difficult for individual investors to determine their annual tax obligations on hundreds of transactions. In addition, many crypto assets are not well understood by the tax community.
Edul Patel, the creator of Mudrex, thinks that since this is the first time that cryptocurrency is being taxed, these platforms are beneficial for investors in determining how much they are required to pay on the earnings from cryptocurrency transactions.