Received Crypto Tax Notice? These Records Can Save You From Costly Disputes

Filing crypto taxes is only half the job. The bigger challenge may come years later if the Income Tax Department asks an investor to explain how those numbers were calculated.As India tightens its oversight of virtual digital assets (VDAs), tax experts say maintaining proper records has become just as important as paying the right tax. Missing documents or mismatched figures could turn a routine verification into a lengthy tax dispute.According to Vikram Subburaj, CEO, Giottus.com, most tax disputes do not arise because investors deliberately hide transactions. Instead, they happen because taxpayers are unable to recreate their trading history several years after filing their returns."Tax disputes often arise not because an investor fails to report a transaction, but because the figures in the return cannot be reconstructed several years later," Subburaj said.'Preserve Detailed Records'He pointed out that crypto investing is rarely limited to a single exchange.