Crypto Taxes India: How much tax will have to be paid on earnings from Cryptocurrency in India? Know this before investing

Crypto Tax in India: The craze of investing in cryptocurrency is increasing continuously these days. The reason for this is that it is giving huge profits to the investors. If you invest in crypto or are thinking of investing, then you should know how much tax you will have to pay on the profit earned from it.

Cryptocurrency has been classified as a virtual digital asset under section 2(47A) of the Income Tax Act. But till now the central government in India has not recognized it as a legal tender.

– Advertisement –

This is the reason why the Income Tax Department (ITD) has not yet issued any specific guidelines for tax on crypto coins.

Taxation rules for virtual digital assets in India

However, let us tell you that the taxation of virtual digital assets (VDA) is governed by the major provisions of the Income Tax Act – Section 115BBH and Section 194S. Under this provision, a flat tax of 30% is levied on the profit from selling virtual digital assets (VDA) and a TDS of 1% is levied on the transaction.

30% tax will have to be paid on profits from crypto

That is, if you invest in crypto currency, then you will have to pay tax at the rate of 30% on the profit earned from it. The Indian government is taking strict steps to regulate this sector. By imposing a 30% flat tax on profits from crypto, it is clear that the government is taking a tough stand on everything that is seen as speculative and volatile investment avenues.

Most of the organizations offering crypto-related products operate without 
regulatory approval, making them especially risky for retail investors. 
Therefore, experts believe that investors should exercise special caution
 while investing in them. Investors should invest only that much of their
 income in them which will not affect their financial condition if it gets
 lost.

This shows that the government’s imposition of a 30% flat tax on profits from cryptocurrency in India is not just a financial imposition but a policy tool through which they aim to curb speculative investments in volatile markets.

Related Articles:-

Train Cancelled: Indian Railways canceled many trains on this route, see the full list

PF account holders ALERT! Have you activated your UAN number? If you don’t do it, you may face problems

LIC’s great scheme, invest here once, you will get a pension of Rs 12,000 for life

– Advertisement –