Crypto was originally bought for 10K and later sold for 11,604, resulting in a profit of 1,604. The profit is correctly reported in the VDA section of the ITR-2, yet Form 26AS displays the full sale amount of 11,604 as income. The notice indicates a discrepancy, stating the gross receipts exceed what was reported in the ITR, implying tax should be levied on the entire sale value. How should one respond to this?
hey, just point out that the 26AS shows the gross sale but your itr only reflects the profit. update with detailed trading statements and ask them to recheck records with your broker. it might just be a record mismtach
hey, im not a tax expert but i think another way to look at it is to explain that the amount in form 26AS is just the total sale proceeds and not what youre being taxed on. you might want to point out that only the profit (1,604) should be taxed and ask them for a detailed breakdown of how they computed the tax liability. i ve seen others mention that it’s often just a clerical misinterpretation. have u noticed if your broker statement clearly distinguishes between total sale and profit? im wonderin if anyone else has had to go through this exact process and how did they get it resolved?