I purchased a cryptocurrency asset for 10,000 and later sold it for 11,604, which resulted in a profit of 1,604. In my ITR-2, the VDA schedule reflects a profit of 1,604, but the Form 26AS shows total receipts of 11,604. I received an official notice stating that the gross receipts in Form 26AS exceed the amounts reported in my ITR, implying that tax should be levied on the entire sale value instead of the net gain. How should I respond to this discrepancy?
Based on past experiences with crypto taxation, careful documentation is crucial. I recommend compiling all supporting evidence that clearly shows your purchase cost and the subsequent sale value. Include statements or receipts that illustrate the original cost being deducted from your total receipts to arrive at the net profit. It may be helpful to submit this evidence along with an explanatory note to the tax authority detailing your calculation. If reusable, consulting with a tax expert who is well-versed in cryptocurrency matters can further clarify any ambiguities in the tax notice.
hey ethan, seems like a numeric mixup. sometimes they tax on gross receipts by default. i’d re-check the guidelines and point out your net profit calc details; maybe you need to flag it as a reporting error. good luck!
Based on my experience with crypto tax discrepancies, it seems that tax systems sometimes automatically reflect the gross receipts, even though tax should be applied to the profit after subtracting the cost basis. In a similar situation, I gathered comprehensive transaction records and correspondence from my digital wallet to clarify the actual gain. I suggest also including an explanatory note with all supporting documents when responding. It might be useful to request a detailed recalculation from the authorities or consult a specialized tax advisor to help resolve the matter efficiently.
hey ethan, looks like the system is showing gross receipts b4 deductions. try sending a note with a clear cost basis breakdown. might be a formatting glitch on their side. good luck sorting it out!
hey ethan, this is a puzzlin situation indeed. i wonder if the tax notice is just showin all raw numbers without subtractin the cost basis properly. i had a similar issue with a trade and ended up contactin a tax advisor who explained that sometimes the tax systems default to gross receipts in their online forms, but the actual tax calc takes the purchase price into account. did u check if there are any recent clarifications or amendments in the crypto tax guidlines? it might also help to write back with a detailed explanation of your cost basis and attach your purchase proofs. has anyone else run into this kind of hiccup? would be cool to share what worked for u. best of luck sortin this out!