Latest news with #Metamask
Time of India
13 hours ago
- Business
- Time of India
Didn't report your crypto earnings? Income tax dept sending tax notices, conducting search & seizure for undisclosed income; know your options
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads What did the Income Tax Department do? Popular in Wealth 1. NPCI introduces real time PAN-Bank Account linking on income tax website; taxpayers may get faster income tax refunds Why are many people getting this type of notice? Tired of too many ads? Remove Ads What to do if you get this type of income tax notice? What is the Schedule VDA of the ITR? Hardware based crypto wallets can be seized during a search operation PIN, password, passphrase, and seed phrases. Wallet names and addresses. Unlike exchange-held crypto, hardware wallet holdings are not reported in 26AS or by intermediaries. If these wallets held assets are not declared in returns, it could be treated as unaccounted income or unexplained investment under Section 69A. If such wallets contained crypto obtained from foreign platforms or wallets (e.g., Binance, Metamask, etc.), Schedule FA disclosure becomes mandatory, and non-disclosure may attract penalty under the Black Money Act. Source of investment, identity of parties involved, and mode of acquisition; Proper classification (business income vs capital gains); Disclosures made to RBI and tax authorities for foreign-held assets or cross-border dealings.' The Income Tax department has sent bulk emails to numerous taxpayers who either haven't paid the correct income tax on their cryptocurrency dealings or have failed to report their cryptocurrency transactions in Schedule VDA virtual digital assets ) of the Income Tax Return ( ITR ). [1] Keep in mind that if you are using foreign crypto exchanges like Binance or others, then you need to file Schedule FA in addition to the VDA schedule in the ITR. Overlooking any of these requirements, could get you into trouble with the tax true that in the past similar bulk emails and notifications were sent out regarding unreported incomes, but this time things are different. The income tax department now has access to information and data about undisclosed crypto income even if the crypto transactions did not go through any Indian exchanges. Multiple experts told ET Wealth Online that their clients received this notice and in some instances, the tax department even conducted search and seizure operations and confiscated hardware-based crypto to give you some context, cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (Sol) and others can either be stored in an crypto wallets provided by exchanges, or in hardware wallets like USB drives and floppy discs. Crypto wallets given by exchanges can be traced and tracked with some effort, but it's much harder to track hardware wallets since there is no information available even from the crypto exchanges where the transactions are taking on to know more about how the income tax department is cracking on both hardware and online crypto wallets for undisclosed crypto gains Sawana, Partner at Lakshmikumaran & Sridharan Attorneys, says: 'We have come across a few such notices. It appears to be a system e-mail which states that the transactions in crypto currencies on which tax has been deducted under Section 194S of the Income-tax Act, 1961, have not been declared in the income-tax return for FY 2023-24 (AY 2024-25). Therefore, this e-mail requires the taxpayers to update their income-tax returns and report transactions in crypto currencies.'Chartered Accountant Abhishek Soni, co-founder, Tax2Win, says: 'A few of our clients have received notices from the Income Tax Department regarding unreported crypto transactions. These notices are part of the department's recent campaign to identify and take action against individuals who failed to disclose income from virtual digital assets (VDAs) in their ITRs.'Priyanka Jain, partner, Vaish & Associates, says: 'In our case, directors of a company approached us when they got a tax notice for unreported crypto income and when their hardware based crypto wallet was seized by the tax department.'Jain shared a brief about what happened in her case. 'In our case, a search was conducted at the residential premises of the assessees and followed by a summons under Section 131(1) of the Income Tax Act, 1961, asking for detailed information related to crypto holdings, mining, transactions, wallet use, and disclosures made to tax and foreign authorities. The assessee responded with Income Tax Returns, bank statements and gains earned from gains from trading -offered under capital gains. Crucially, the assessee also submitted Zebpay and WazirX exchange statements for the period under search, reflecting a long trail of transactions. Despite these disclosures, the tax department remained unconvinced and further the department issued further follow-up notices. Also, the question with respect to discovery of crypto hardware wallet found during search were asked.'Soni says that the income tax department has used data from crypto exchanges and TDS (Tax Deducted at Source) returns. Once they got the data they analysed it and found mismatches between what taxpayers declared in their Income Tax Returns (ITRs) and the actual transaction data available.'This discrepancy has triggered alerts and emails to thousands of taxpayers for the financial years 2022–23 and 2023–24. In many cases, taxpayers were either unaware of the reporting requirements or mistakenly believed crypto earnings were beyond the tax net,' says Accountant (Dr.) Suresh Surana says many taxpayers have received this notice as this is part of the tax department's 'NUDGE' campaign. This NUDGE campaign is a step before the action is being taken. It's like the tax department has all the information they need to take action but is still giving you one more chance to come says: 'The Income Tax Department has recently issued notices to thousands of individuals as part of its 'NUDGE' campaign, which aims to encourage voluntary compliance through data-driven insights. These notices primarily target taxpayers who have failed to disclose or have under-reported income earned from crypto transactions. By leveraging data analytics, the department has identified discrepancies between the income reported in ITRs and the transaction data or TDS details provided by crypto exchanges.'In every virtual digital asset (VDA) or crypto transaction, if you have made any capital gains, you have to pay a flat tax rate of 30% and the only deduction you can take is for the cost of acquisition. Plus, any losses from these transactions can't be offset or carried reason the tax department sent out this notice is because they noticed many taxpayers either not reporting this income under Schedule VDA of their ITR or incorrectly claiming deductions, which led to these advisory notices being explains: 'Taxpayers who have received such notices should review their filed returns for the relevant years, gather complete transaction details, and, if necessary, file an updated return (ITR-U) under Section 139(8A) to correct any omissions. It is essential to pay the appropriate additional tax along with interest to avoid further scrutiny, penalties, or prosecution. Maintaining proper records such as TDS certificates, exchange statements, and transaction logs is also crucial for substantiating claims in case of any potential litigation.'Soni says in their client's cases, they have filed the ITR-U after mentioning the correct details of cryptocurrency transactions to ensure proper compliance and avoid any further VDA is a compliance schedule that every cryptocurrency user needs to fill even if they have not sold any crypto but bought and held from Lakshmikumaran & Sridharan Attorneys says: 'My advice would be to report such transactions in Schedule VDA to the income-tax return and claim the credit for taxes deducted at source. Non-reporting of such transactions may result in reopening of cases and penal consequences.'Soni says: 'For those involved in crypto trading or investments, it is essential to disclose all VDA income accurately in the ITR under the specific 'Schedule VDA' section. Even if the income is a loss, reporting it is mandatory.'Soni says: 'If crypto income was missed in past ITRs, one should consider filing an updated return under Section 139(8A) before the deadline. Responding promptly to any notice and maintaining detailed records of all transactions, wallet histories, exchange summaries, and TDS details is crucial to avoid penalties and scrutiny.'Jain says in her client's case, the most defining moment was the discovery of multiple hardware wallets during the search operation. These are private vaults controlled only by the says that this seizureled to a series of questions seeking access to:Jain shares why this is critical:Jain explains: 'Even without active usage, mere possession of undisclosed crypto wallets becomes a basis to question wealth accumulation, source, and tax treatment. This case is a cautionary tale showing that taxability in cryptocurrencies arises from digital trails like TDS, exchange logs, and even physical hardware wallets.'Jain says: 'Even if income has been declared under presumptive taxation or as capital gains, the burden of proof lies on the assessee to show:Jain adds: 'And most importantly, mere possession or mention of a wallet if not accounted for, can create a strong presumption of taxable holding.'
Yahoo
02-06-2025
- Business
- Yahoo
The company that owns MetaMask just acquired wallet infrastructure Web3Auth
Consensys, an Ethereum-focused crypto infrastructure company, announced on Monday that it has closed a deal to acquire Web3Auth, a security management company. The acquisition is particularly important for Consensys' most popular product, a crypto wallet called Metamask. Web3Auth is part of a larger effort to make the wallet more accessible to non-crypto native users, and allow them access without the onerous and often perilous process of remembering their passwords. 'This integration enhances MetaMask's capabilities significantly, embodying our belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features,' Joseph Lubin, Founder & CEO of Consensys, said in a statement. Dan Finlay, co-founder of MetaMask, added that the acquisition is 'really about smoothing that adoption ramp and providing a more familiar backup experience to people.' This latest acquisition comes 10 months after Consensys acquired Wallet Guard, a browser extension that alerts users to malicious transactions on MetaMask. With more than 100 million users, MetaMask has become one of the leading self-custody wallets since it launched in 2016. Self-custody refers to a type of crypto wallet where investors maintain total control over their holdings, rather than handing over their crypto to an exchange like Coinbase. The benefits of this include avoiding third party risks and restrictions, like limits on the size of transactions. But in order to provide these upsides, self-custody wallet users are required to maintain their own private key—an alphanumeric code that unlocks their wallet. And unlike traditional bank accounts, there is no 'forgot your password' option. That has led to incidents of people who theoretically have access to vast wealth, but have forgotten their codes. That may be contributing to why there are 1.8 million Bitcoins—about 9% of the token's total supply in circulation—held in wallets that have been totally inactive for a decade or more, according to a 2024 survey conducted by Fortune in collaboration with crypto data analytics firm Chainalysis. Finlay says these passwords create a barrier to entry for new crypto users who don't trust themselves to hold onto their private key, but also don't want to engage with large crypto exchanges—especially after the FTX collapse. 'Don't share this with anyone, but also don't lose it is a very difficult needle to thread,' he said. Consensys and Metamask are trying to solve for this with the Web3Auth acquisition; that company, founded in 2019 and formerly known as Torus, has developed software that allows users to create and log into their self-custody wallet through their social media accounts like Google, X, or Discord, rather than remembering their passwords. Web3Auth also offers services that increase security, like multi-factor authentication. Most of the Web3Auth team will be joining Consensys, according to a spokesperson for Consensys. Consensys declined to disclose the size of the deal or whether it was made in all cash, stock or both. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-04-2025
- Business
- Yahoo
Lombard Finance Launches Toolkit to Unlock Bitcoin's $154B DeFi Opportunity
Lombard Finance, a Bitcoin infrastructure developer, has launched a software development kit (SDK) that allows wallets, exchanges, and other platforms to offer one-click bitcoin (BTC) staking. The release aims to further bring BTC into the decentralized finance (DeFi) economy by tapping into the estimated $154 billion in bitcoin estimated to be sitting idle on centralized exchanges. The new toolkit allows users to stake BTC to mint a liquid staking token called LBTC, which can be automatically deposited into Lombard's DeFi Vault for a current annual yield of 3%, according to the protocol. 'Once viewed solely as a store of value, Bitcoin is now increasingly being integrated into DeFi, unlocking new earning opportunities for BTC holders,' said Lombard Finance co-founder Jacob Phillips, who added that the SDK removes 'the complexity for both platforms and users.' Leading cryptocurrency exchanges Binance and Bybit have already integrated the SDK, with additional wallet integrations—including xVerse, Metamask, and Trust Wallet—also being supported. For these platforms, the integration offers new revenue streams and a way to keep users engaged through a new DeFi offering, Lombard says. Bitcoin staking through Lombard's system began seven months ago and has grown into a $4 billion market. Lombard's DeFi Vault, powered by smart contract provider Veda, currently holds more than $200 million in total value locked. The protocol expanded last month with the launch of its liquid-staking bitcoin token, LBTC, on the Sui blockchain. Sign in to access your portfolio
Associated Press
27-03-2025
- Business
- Associated Press
Omni, the First Crypto Wallet to Pioneer the Multi-Chain Web3 Experience, Acquired by Echo Base Holdings
Omni Web3 wallet joins the growing Echo Base ecosystem of leading cryptocurrency investment tools and platforms, including Paxful and TabTrader NEW YORK, NY, March 26, 2025 (EZ Newswire) -- Omni Acquisition Corp. ('OAC'), an affiliate of Echo Base Holdings ('Echo Base'), acquired the assets, operations, and key staff of the Omni Wallet ('Omni'), a leading Web3 wallet known for pioneering multi-chain integration, from Omni Ltd. This Echo Base acquisition further extends the ecosystem of cryptocurrency and fintech-based ventures to give users full crypto autonomy across more than 25 blockchain networks. The Echo base portfolio includes Paxful, the world's largest people-powered marketplace, connecting over 14 million users across 140+ countries to move, earn, save, and store money - even without a bank account. Omni is the most comprehensive wallet in Web3, aggregating the in-demand features, such as swapping, staking, lending, token management, DeFi, NFTs, and more into one mobile-first platform. Omni's multi-chain support and full-suite product integrations aim to make any crypto function as user-friendly as ordering an Uber. Omni's key employees joining the global Echo Base team will continue building on the platform and scale further user adoption while shipping new cutting-edge products. In 2021, Omni launched as the next generation Web3 super app, redefining crypto accessibility by seamlessly integrating assets, staking, NFTs, and dApps across 25+ blockchains—including EVM, non-EVM, and major Layer 2 solutions. Omni addressed the increasing complexity of managing diverse blockchain assets, introducing groundbreaking ease with its intuitive Explore Screen, allowing users to effortlessly stake, swap, and bridge tokens, engage in liquid staking without lockups, and directly access dApps like Yearn Finance and Aave V3. It consolidated multiple wallet management into one streamlined experience by enabling seamless import of wallets like Metamask, Phantom, and Keplr. Omni further enhanced convenience with a native fiat on-ramp. Its robust security featured direct Ledger hardware wallet integration, ensuring assets remain protected. Omni unified NFTs across Ethereum, Polygon, Solana, and beyond, showcasing them within one elegant multi-chain gallery. Built from first principles to tackle Web3's evolving demands, Omni simplified complex interactions, making Web3 universally accessible. Founded by co-founders and core team members, Apurv Mishra, Philip Zudemberg, and Serafin Lion Engel, are excited for the new chapter ahead for Omni—continuing to deliver unmatched functionality, security, and always staying ahead to make crypto accessible. 'From the beginning, our goal at Omni has been to simplify digital portfolio management and give users access to all of web3 in one approachable, effective, and engaging app,' says Serafin Lion Engel, CEO of Omni and StakeKit. 'Joining the Echo Base ecosystem will supercharge Omni's growth trajectory as the home for all things staking and DeFi. We're excited to see Omni reach new heights with the Echo Base team.' 'The Echo Base portfolio provides an exceptional trading experience for our crypto users from on-ramp to arbitrage to yield generation. Bringing Omni into our ecosystem equips our users with best-in-class storage and utility solutions for their assets. Now users can manage all their digital finance needs without leaving our portfolio of products,' adds Roshan Dharia, CEO of Echo Base. About StakeKit StakeKit provides the most comprehensive infrastructure for accessing, orchestrating, and monetizing staking and DeFi yields across Web3. Trusted by industry leaders such as Ledger, Zerion, and Tangem, currently powering more than 1,000 yields across more than 75 blockchain networks, spanning staking, liquid staking, restaking, Real-World Assets (RWAs), and DeFi. To learn more, visit Launched in 2021, Omni is a comprehensive Web3 wallet supporting assets across 25+ blockchain networks, enabling seamless token management, DeFi activity, NFTs, and multi-chain staking with a single mnemonic. It aggregates bridging and DEX services for efficient swaps, abstracts staking complexity, integrates Ledger for security, and offers WalletConnect, fiat on-ramp, and broad NFT support. For more information, visit ### SOURCE: StakeKit
