Cryptocurrency in India

Hey,

If I buy crypto and sell within the same year, what kind tax will be applicable at what rate or is there no tax?

@Latesh_Bayad, there are two schools of thought for taxes on crypto, some believe it should be taxed as capital gains and others believe it should be considered as income from other sources.

If the cryptocurrency is held as an Investment and being exchanged for Fiat Money it may be treated as capital gains.
There are some articles which you might find useful

Hi,
Is it possible to sell the crypto for another person (the proceeds have gone to the other person’s savings account).

The account with the Crypto Exchange is of person A. The proceeds have gone to person B, who holds a joint savings account with person A.

Can the person B now show a short term gain/loss in her ITR?

Please let me know.

Thank you.

Hey @Shama,

The taxability of Cryptocurrencies arises under Income from Capital Gains if it is held as investment or trading. The cryptocurrency shall be considered as a Capital Asset and the taxability shall arise in the hands of person owning the same.
In Your case, since, Person A is owner of the cryptocurrencies; so any gains arising from sale of cryptocurrencies shall be taxable in the hands of Person A as the data/KYC registered with exchange is that of Person A. It shall make no difference if the proceeds are received in Joint Savings A/c which is held along with Person B.
Person B shall ignore the same proceeds in his ITR as Person A is paying the taxes in his ITR.

Hope it helps!

Budget 2022 brings taxes on Crypto, NFTs and other Virtual Digital Assets

Hello All, I am NRI. I hold crypto assets bought in foreign currency denominations (USD) and would like to sell and realize profits in INR. Due to the difference in the currency denominations between buy and sell of digital assets, how is the profit or loss calculated? If in profit, how is the tax calculated and to be paid?

Hi @Murali_Krishnan_S, if you are receiving profits in India then you will be taxed at 30% + 4% HEC and if you are receiving profits outside of India, then they are not taxable in India. You can also go through the blog attached below which will help you how the new budget affects you crypto trading and profits. Let me know if you need any further clarification. :blush:

Irrespective of my tax slab ; crypto is taxed @30% . ?

I mean if my income is zero and i made profit from crypto trading Rs. 1 lakh ; i pay tax 30,000/= ? Or i’ll get STGC excemption of 1 lakh ?

Or crypto is taxed 30% based on my tax slab ?

In this case ; if my income is 5 lakhs including 1 lakh income from crypto trading ; i declare crypto income in first slab which is taxfree upto 2.50 lakh !

What is the rule ?

Hi @HIREiN,

Unlike incomes such as salary, house property, capital gains from equity shares, mutual funds, ETFs etc. the basic exemption limit rule does not apply to income from Crypto, NFTs, and other virtual digital assets.
Meaning, that even if your total income is below the basic exemption limit you will have to pay tax on your earnings from crypto.

I have Bitcoin income from trading activity. Is it taxable? If yes, how??

Hey @Rakesh_Sharma

There is ambiguity on how to tax cryptocurrency since the Govt doesn’t consider Cryptocurrency as a legal tender. There are 2 schools of thought that discuss can be taxed under Income from Other Sources or Capital gains.

To understand more about the taxability of Bitcoin, please refer to this article.