Are cryptocurrency gains taxable?
Raju Kumar
Asked: 11 months ago2024-03-22T19:58:31+05:30
2024-03-22T19:58:31+05:30In: Cryptocurrency
Are cryptocurrency gains taxable?
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Yes, cryptocurrency gains are taxable in India. Under the Income Tax Act, cryptocurrencies are classified as Virtual Digital Assets (VDAs), and profits from trading, selling, or spending these assets are taxed at a flat rate of 30%. Additionally, a 1% Tax Deducted at Source (TDS) applies to transactions exceeding specific thresholdsββΉ50,000 for most taxpayers and βΉ10,000 for specified individuals.
Other forms of crypto income, like staking rewards, airdrops, or mining, are also taxable, typically at your applicable income tax slab rate. Reporting such income is mandatory under the newly introduced Schedule VDA in Income Tax Returns. Losses from crypto transactions cannot be offset against gains or other income, and only the cost of acquisition is deductible.
It’s important to stay updated with tax regulations and consult a tax professional to ensure compliance.