With tax season ending, the number of ITRs filed daily is skyrocketing. Nearing deadlines creates misleading statements related to penalties, fees, and TDS. Indian crypto investors may face irrelevant updates regarding their Income Tax Returns (ITRs) for the fiscal year 2023-24.
This is why this article will guide you through the essential steps for ITR filing and what happens if you miss the deadline. It will also debunk any misinformation you may hear about the same. So, let’s begin.
Deadline for ITR Submission
The deadline to submit your ITR for the fiscal year 2023-24, covering April 1, 2023, to March 31, 2024, is July 31, 2024. This is the last day to file your return without incurring any late fees.
Currently, there aren’t any official updates regarding the deadline extension. So, if you hear any news about the extended deadline, don’t give it that importance. Please check the official income tax portal for all the latest news.
Applicable ITR Forms For Crypto Investors
Although seven ITR forms are available, here are the ITR forms a crypto investor must fill out. For reporting income from cryptocurrency, you will need to use the following ITR forms:
- ITR-2: You must file ITR-2 if you earn capital gains from trading, swapping, staking, mining, or exchanging cryptocurrencies.
- ITR-3: If you are earning business income through crypto mining or staking using large-scale rigs, you must complete ITR-3.
Note: Ensure that your crypto income is declared accurately in Schedule VDA of the respective form.
What If You Miss the Deadline For ITR Filing?
Missing the tax filing deadline can be stressful, but don’t worry—you still have options. If you miss the July 31 deadline, you can file your Income Tax Return (ITR) late until December 31, 2024. Here’s what you need to know:
Late Fees
If you file after the deadline, be prepared for late fees. If you file before December 31, you might have to pay a fees of up to INR 5000. If your income is below INR 5 lakhs, the fine will be INR 1000.
Interest
In addition to late fees, an interest rate of 1% per month will apply to the tax amount due. This interest accumulates on the outstanding tax, so the longer you wait, the more you will owe. Paying your taxes promptly, even if late, helps reduce the interest charged.
Misinformation About Late ITR Filing
Late filing of Income Tax Returns (ITR) often leads to misconceptions. Let’s clear up some common myths to help you understand the real impact of filing your ITR late.
TDS Refund Issues
A common myth is that filing your ITR late will prevent you from receiving your TDS (Tax Deducted at Source) refund. This is not true. If you file your ITR before the extended deadline, December 31, 2024, you will still receive your TDS refund. The process for getting your refund remains unchanged regardless of the filing date.
Heavy Penalties for Late Filing
Many people believe that late filing of ITR incurs heavy penalties. However, this needs to be clarified. While there are no heavy penalties for late filing, there are late fees and interest charges on the tax amount due. Late fees depend on how late your filing is, but they are less severe than some might think.
Income Tax Notices
Another false belief is that late filing automatically triggers an income tax notice. This is not the case. Filing your ITR late does not prompt the Income Tax Department to issue a notice. Notices are generally issued based on other issues, such as discrepancies in the return or non-disclosure of income.
Red Flags with Income Tax Department
It’s also a myth that late filing raises a red flag with the Income Tax Department. Late filing is legally permissible and does not inherently create problems with the department. The department understands that delays can happen and does not automatically assume there is an issue with your return simply because it was filed late.
Understanding these points can help you avoid unnecessary stress about late ITR filing. To keep everything in order, ensure you file your return as soon as possible and address any outstanding tax liabilities.
How Can KoinX Help?
Filing your crypto Income Tax Return (ITR) can be daunting, but KoinX makes it straightforward and stress-free. Here’s how KoinX can assist you in managing your crypto taxes effectively.
Accurate Tax Report
KoinX generates precise tax reports tailored to your crypto transactions. By analysing your trading history and financial data, KoinX provides a detailed report that includes your capital gains, losses, and taxable income. This accuracy ensures that your tax return reflects your financial position, reducing the risk of errors and compliance issues.
ITR Filing Assistance with Bundle Plans
KoinX offers bundle payment plans that simplify your tax management. With these plans, you pay a single fee for various services, including tax report generation and ITR filing assistance. This cost-effective approach helps you avoid unexpected expenses and ensures you receive comprehensive support throughout the filing process.
Comprehensive Portfolio View
One of KoinX’s standout features is its comprehensive portfolio view. The platform consolidates all your crypto assets and transactions into a unified dashboard, giving you a clear picture of your holdings and their performance. This holistic view helps you track your gains and losses more effectively, making tax reporting more manageable.
Integration from 280+ Exchanges
KoinX integrates with over 280 crypto exchanges, ensuring you accurately capture all your transaction data. This extensive integration eliminates the need for manual data entry and reduces the chances of missing essential transactions. Whether you trade on multiple platforms or hold assets in various wallets, KoinX ensures that your tax reports include every relevant detail.
With KoinX, you can handle your crypto ITR filing with confidence, knowing that you have access to accurate reports, expert assistance, and a comprehensive view of your portfolio. So, if you aren’t there yet, sign up on KoinX today!
Conclusion
With only a few days left before the ITR filing deadline, it is crucial to act promptly. If you haven’t started your ITR process, there’s no need to panic. You can still file a late ITR if necessary. Understanding these guidelines and dispelling misinformation will help you manage your crypto investments effectively and avoid unnecessary complications. Stay informed, file on time, and comply with all the tax regulations. If you have any questions or need assistance, don’t hesitate to seek professional advice.
