Bitcoin or any other cryptocurrencies are not legal tenders in India. The Reserve Bank of India (RBI) has not yet granted the status of legal tender. Still, it is not illegal as the supreme court has allowed banks to handle cryptocurrency transactions from traders and exchanges Now come on taxationRead more
Bitcoin or any other cryptocurrencies are not legal tenders in India. The Reserve Bank of India (RBI) has not yet granted the status of legal tender. Still, it is not illegal as the supreme court has allowed banks to handle cryptocurrency transactions from traders and exchanges
Now come on taxation of cryptocurrency.
Since Nature of “cryptocurrency trading” falls under the definition of Section 2(14) of the Income Tax Act of “capital asset”. cryptocurrency is treated as ‘property of any kind held by the assessee whether or not connected with his business or profession’.
Therefore, any gains arising out of the transfer of cryptocurrency must be considered as capital gains, if they are held for investment.
Depending on the duration for which these crypto currencies assets are held for the purpose of investment, they would be taxed as long-term capital gains (20 percent post indexation) or short-term capital gains (taxed as per individual slab rate).
Bitcoin or any other cryptocurrencies are not legal tenders in India. The Reserve Bank of India (RBI) has not yet granted the status of legal tender. Still, it is not illegal as the supreme court has allowed banks to handle cryptocurrency transactions from traders and exchanges Now come on taxationRead more
Bitcoin or any other cryptocurrencies are not legal tenders in India. The Reserve Bank of India (RBI) has not yet granted the status of legal tender. Still, it is not illegal as the supreme court has allowed banks to handle cryptocurrency transactions from traders and exchanges
Now come on taxation of cryptocurrency.
Since Nature of “cryptocurrency trading” falls under the definition of Section 2(14) of the Income Tax Act of “capital asset”. cryptocurrency is treated as ‘property of any kind held by the assessee whether or not connected with his business or profession’.
Therefore, any gains arising out of the transfer of cryptocurrency must be considered as capital gains, if they are held for investment.
Depending on the duration for which these crypto currencies assets are held for the purpose of investment, they would be taxed as long-term capital gains (20 percent post indexation) or short-term capital gains (taxed as per individual slab rate).
Happy crypto trading 🙂
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