A student with an annual income below βΉ2.5 lakh but a cryptocurrency profit of βΉ80,000 must file an Income Tax Return (ITR) in India. According to the tax rules, crypto profits are taxed at a flat 30% rate, with an additional 4% cess. This means a total tax liability of βΉ24,960 on the βΉ80,000 profitRead more
A student with an annual income below βΉ2.5 lakh but a cryptocurrency profit of βΉ80,000 must file an Income Tax Return (ITR) in India. According to the tax rules, crypto profits are taxed at a flat 30% rate, with an additional 4% cess. This means a total tax liability of βΉ24,960 on the βΉ80,000 profit, regardless of whether the individualβs total income falls below the basic exemption limit.
Since cryptocurrency transactions are monitored by the Income Tax Department, failing to disclose such income can lead to penalties or scrutiny. Filing an ITR not only ensures compliance but also helps in maintaining a clean financial record for future credit or loan applications.
Experts recommend filing the ITR promptly and consulting a tax advisor to avoid complications.
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