India
Cryptocurrency Tax Information
In India, cryptocurrencies are classified as Virtual Digital Assets (VDAs) under the Income Tax Act. Gains from VDAs are taxed at a flat 30% rate, effective from April 1, 2022. Additional taxes include surcharge, cess, and 1% TDS on transactions.
- Gains are taxable upon sale, exchange, or transfer of crypto assets.
- No exemptions or thresholds; all gains are taxable regardless of amount.
- Deductions limited to cost of acquisition; no other expenses allowed.
- Losses from VDAs cannot be set off against other income or carried forward.
- Staking rewards are treated as income from other sources, taxed at applicable slab rates.
- Airdrops, forks, and other crypto income are taxable at receipt as other income.
- Tax calculated on fair market value at the time of receipt.
- Expenses related to mining can be deducted if treated as business income.
- Report annually with the ITR filing.
- Use ITR-2 or ITR-3 forms for individuals; Schedule VDA for crypto details.
- Key deadline is July 31 for most taxpayers; maintain records of transactions and valuations.
- No tax on holding crypto; only on transfer or income generation.
- Gifts of crypto are taxable for the recipient at fair market value.
- Recent changes in Budget 2023 clarified VDA definitions but retained 30% tax rate.
- Non-compliance can lead to penalties up to 200% of tax evaded.
India's Crypto Tax Regime Sees No Changes in Budget 2024
The Indian government maintained the 30% tax on crypto gains in the latest budget, disappointing industry calls for reductions. Experts predict this will continue to impact trading volumes.
July 23, 2024
TDS on Crypto Transactions: Compliance Challenges for Exchanges
Indian crypto exchanges report difficulties in implementing 1% TDS, with users facing higher compliance burdens. Regulators emphasize strict adherence to avoid penalties.
June 15, 2024
Supreme Court to Hear Petition on Crypto Tax Legality
A petition challenging the 30% crypto tax as unconstitutional is set for hearing. Petitioners argue it discriminates against digital assets.
May 10, 2024
Budget 2024: Crypto Industry Seeks Tax Relief
Ahead of the budget, crypto stakeholders lobbied for lower taxes and loss set-off provisions. No major changes were announced, maintaining the status quo.
April 20, 2024
Income Tax Dept Issues Notices to Crypto Investors
Thousands of crypto traders received notices for underreporting gains. Authorities are using transaction data from exchanges to enforce compliance.
March 5, 2024
Clarifications on Staking Rewards Taxation in India
The tax department clarified that staking income is taxable at receipt, aligning with VDA rules. This affects DeFi participants significantly.
February 14, 2024
Crypto Mining Income: New Guidelines Released
Guidelines specify mining rewards as business income, allowing expense deductions. This provides clarity for miners amid rising energy costs.
January 8, 2024
Impact of 30% Tax on India's Crypto Market
A report shows trading volumes dropped 80% since the tax implementation. Experts call for reforms to revive the sector.
December 20, 2023
Finance Ministry Reviews VDA Taxation Framework
The ministry is reviewing the VDA framework for potential tweaks. Industry input is being sought on TDS and reporting.
November 11, 2023
CBDC and Crypto Tax Implications Discussed
Discussions on how India's digital rupee interacts with crypto taxes. Experts predict no tax on CBDC holdings, unlike VDAs.
October 5, 2023
Disclaimer: This information is AI-generated and for educational purposes only. Tax laws are complex and subject to change. Always consult with a qualified tax professional for advice specific to your situation.