Here’s a breakdown of the current cryptocurrency tax situation in India as of April 10, 2024:
Taxes on Crypto Gains:
- 30% tax: Any profits made from selling crypto for fiat currency like INR are subject to a 30% tax rate. This tax is similar to the taxation of short-term capital gains.
- No Set-off or Carry Forward: Unlike some other assets, losses incurred on crypto transactions cannot be offset against other income or carried forward to future tax filings.
TDS (Tax Deducted at Source):
- 1% TDS: Introduced in July 2022, a 1% TDS applies to all cryptocurrency purchases exceeding ₹50,000 in a single transaction or ₹10,000 in a financial year depending on your filing status. This TDS is deducted by Indian crypto exchanges or the buyer in case of P2P and international platforms.
Important Points:
- Filing: Crypto income needs to be declared in your tax return.
- No Clarity on Staking/Mining: There are currently no clear regulations on the taxation of income earned through crypto staking or mining.
Resources for Further Information:
- ClearTax – Crypto Taxation Guide: https://cleartax.in/crypto-tax-filing/
- Koinly – Crypto Taxes India: https://koinly.io/guides/crypto-tax-india/
- CoinDCX – Guide to Crypto Tax in India: https://coinledger.io/integrations/coindcx
Disclaimer: This information is for general guidance only and should not be considered tax advice. Always consult with a qualified tax professional for personalized advice regarding your specific situation.