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How do I file cryptocurrency income tax return?
If cryptos are treated as investment, then long-term capital gains on sale of cryptos would need to be reported under CG schedule of ITR -2/ ITR-3 (if there are sources of business income), it will be reported under the head “From sale of assets where B1 to B8/B9 above are not applicable” for FY 2020-21.
How do I pay tax for crypto in India?
In India, there are no specific guidelines on the taxation of cryptocurrency in the Income-Tax Act, 1961. But taxpayers need to report transactions if they have invested in cryptocurrencies and gained from those investments.
Is profit from cryptocurrency taxable in India?
Unlike listed securities, where short-term capital gains is applicable at a flat rate of 15 per cent, income from cryptocurrencies are taxable according to the tax slab of the investors, with a cess of 4 per cent.
Do you have to pay income tax on cryptocurrency?
Bitcoin and other cryptocurrencies that you buy, sell, mine or use to pay for things can be taxable. Also, if your employer or client pays you in bitcoin or other cryptocurrency, that money is taxable income.
Is income from cryptocurrency taxable?
Unlike listed securities, where short-term capital gains is applicable at a flat rate of 15 per cent, income from cryptocurrencies are taxable according to the tax slab of the investors, with a cess of 4 per cent. “If shares are held for more than a year, it is considered as capital gains.
Are Cryptocurrencies taxable in India?
Tax on Cryptocurrency Cryptocurrencies are not taxed in India currently, but taxpayers do need to declare their gains from investments in crypto.
How much tax do you pay on cryptocurrency?
The cryptocurrency tax rate for federal taxes is the same as the capital gains tax rate. In 2021, it ranges from 10-37\% for short-term capital gains and 0-20\% for long-term capital gains.