Tax filing for salary individuals has started for the current year. A document called Form 16 and distribution has been started by the employers and this is an important form that requires for detailed understanding of the income and investment etc. I received my form 16 last week and will be going through the form to figure out all the numbers because that is a required step before I proceed with the tax filing. Usually in India 31st July is the last date for the tax filing but sometimes when there is demand the government extend this due date by a month or so depending upon the number of cases filed. Although this deadline was not extended last year its better to be ready and get the filing done before the due date.
For crypto users, the tax filing is quite complicated in the country because they have to follow a different process along with showing the income from their employment as well as from crypto where the percentage can be different for both types of income. For example, if one individually is employed then the income will be taxable based on a slab and this slab starts from 10% and goes up to 30%. There are two tax regimes also so depending upon the choice you made, your tax calculation will happen. In the next new tax regime, there is no exemption provided by the government however the no-tax limit is increased and it is higher than the old tax regime.
People who have been claiming different expenses as part of the exemption should go with the old regime. Because I claim those expenses I have been opting for the old regime as new is not new for me. The new one is good for those who started earning in the last few years and they are not claiming any tax benefits by showing the investment and other expenses. The new tax regime is easy because there are no complex calculations involved but the old one is slightly complicated it's good enough because at least people are getting some exemption as part of the investment.
Now talking about the taxation on crypto income which will be flat at 30% and there is no slab involved. I mean to say no matter what amount you have earned through crypto will be liable to get taxed at 30%. It means there will be dual calculations and the different forms will also be used. Last year I did the same and it took me a long time to get familiar with the form even though, it was rejected once because some of the information was not correct, and I had to revise my tax filing which was approved after almost 4 to 5 months.
I have received my Form 16 for the year and will be trying to read it properly because those are the numbers I need to put in the filing. There is a point that needs to be considered if you haven't sold any crypto in the last year or if there is no income through crypto then crypto taxation is not applicable in your case. There is no tax on crypto holding so if you have not performed any conjecture then you are not supposed to do anything and follow the simple tax filing process for your income generated through the employment.
Sometimes this process can be complicated and I believe that it is good to go with assistance as they are the experts, and they know everything about tax filing. Professional help can be a good idea because its good to file the correct access and generally their fee is not so high so I believe its worth doing it if you are not a pro in tax calculations and filing. Last year I opted for professional help and my experience was good so I'll see if this year also I will need it but will be doing it once I go through form 16. There is enough time to get the filing done because 31st July is the last date hence I will be planning to get it done by May or Max by June month.
Thank you