How Can I file my crypto losses?

shubham

I have made some gains and some losses in crypto, but when filing returns, I found no way to file losses. Can anyone guide me on the correct way of filing crypto losses?

vishnu

In India, you cannot file your crypto losses because offsetting, the practice of combining the profits and losses is not available for virtual digital assets, i.e., crypto.

gautam

Crypto losses cannot be carried forward like stock market losses, which can be carried forward for 8 years. Further, you have to pay flat 30% of profits as taxes even if your losses are greater than the profits. This does not happen in other countries where crypto profits are treated as a part of income.

raman

It is better to not cash out your crypto income if possible because crypto losses cannot be filed to gain tax benefits, which I think you are trying to do. Also, once you convert your profits into fiat money, you will have to compulsorily pay taxes on it. Hence, it is better not to try any alternative methods to file crypto losses and accept it as a part of crypto trading.