📘 Cryptocurrency Regulatory Compliance in Bangalore: A Guide by TAXAJ

As India continues to evolve its stance on digital assets, Bangalore, known as the Silicon Valley of India, has emerged as a hub for cryptocurrency investors, blockchain startups, and fintech innovation. However, this innovation comes with regulatory responsibilities. At TAXAJ, we help individuals and businesses stay compliant with the latest cryptocurrency tax regulations and reporting norms.

🧾 Current Regulatory Framework in India

India does not currently recognize cryptocurrency as legal tender. However, it has established a clear tax structure for virtual digital assets (VDAs) under the Finance Act, 2022:

• 📊 30% tax on income from transfer of VDAs

• 💸 1% TDS (Tax Deducted at Source) on transactions above a certain threshold under Section 194S of the Income Tax Act

• ❌ No deduction for expenses except the cost of acquisition

• 🔁 No set-off of losses from VDAs against other income

📍 Compliance Requirements in Bangalore

Being a tech-forward city, Bangalore is home to a growing population of crypto traders, NFT artists, and blockchain developers. Here’s how TAXAJ ensures your cryptocurrency activities remain compliant:

1. 📑 Accurate Transaction Reporting

We help record and reconcile all VDA transactions—whether through centralized exchanges, DeFi platforms, or peer-to-peer wallets.

2. 🧮 Capital Gains Calculation

We assist in calculating short-term and long-term capital gains based on transaction history, including airdrops, mining rewards, staking income, and token swaps.

3. 💼 Business Structuring for Web3 Startups

For startups and developers in the Web3 space, we offer tailored company registration, GST compliance, and IP protection services.

4. 📤 Filing VDA Disclosures with ITR

We ensure proper disclosure of VDA transactions in your Income Tax Returns (ITR)—specifically in the new Schedule VDA of ITR forms.

🛑 Penalties for Non-Compliance

Failing to comply with cryptocurrency regulations can lead to:

• 🚨 Notices from the Income Tax Department

• 💰 Penalties and interest on unpaid taxes

• 🧾 Scrutiny under anti-money laundering laws (PMLA)

⚖️ The Role of TAXAJ

At TAXAJ, we act as your crypto compliance partner, ensuring:

• ✅ Adherence to Indian crypto tax laws

• 📘 Up-to-date insights on regulatory changes

• 🧠 Expert advisory for retail investors and businesses alike

🔮 The Road Ahead

With the Indian government working on a comprehensive regulatory framework for cryptocurrencies, including potential licensing, KYC norms, and foreign remittance rules, Bangalore-based investors and startups must stay proactive. Partnering with a trusted advisor like TAXAJ ensures you're ahead of the curve.

📝 Ready to Get Compliant?

Whether you are an investor, NFT creator, or Web3 entrepreneur, TAXAJ is here to guide you through the evolving world of cryptocurrency compliance.