r/CryptoTax • u/OrmrO • 8d ago
Question Crypto tax
I receive my payment through crypto and cashed it through coindcx , how much I have to pay tax ?
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u/Will_Koinly 7d ago
Assuming you're India based given CoinDCX, there are two separate taxable events here
Getting paid in crypto is generally income on receipt, taxed at your slab rate on the INR value the day it landed (exactly how it's classified depends on whether it's salary / freelance or business income). Cashing out is separate, 30% plus cess on any gain since that day. The 1% TDS the exchange took isn't an extra tax, it offsets what you owe when you file
How much you owe depends on your slab and how far the price moved in between. Consult a CA to be sure on your liability, and run your full tx history through crypto tax software (include all wallets and any other exchanges you've used -for accurate cost basis) to get the numbers
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u/Aggressive-Leading45 8d ago
In the US you’d have to determine your capital gains (long or short) and the income. If you are cashing out within a year then you just take the amount you received minus the value you it was when initial coming under your control. That amount may be positive or negative. Positive values are added to you total income before the income tax is assessed. Negative can be subtracted up to a limit.
As to the receipt of it that will be added to the proceeds received for your company. Many things you can subtract off as business expenses. Then you apply SE tax and income tax on the total income from the business.
If your income is more than $200k then there is an additional tax on all investment income.