{"id":11979,"date":"2021-05-11T01:24:52","date_gmt":"2021-05-10T19:54:52","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=11979"},"modified":"2025-09-27T22:46:42","modified_gmt":"2025-09-27T17:16:42","slug":"all-about-cryptocurrency-taxation-scenario-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/","title":{"rendered":"Cryptocurrency Taxation Scenario in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a0d10aee02d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a0d10aee02d3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#Cryptocurrency_Taxation_Scenario_in_India\" title=\"Cryptocurrency Taxation Scenario in India\">Cryptocurrency Taxation Scenario in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#WHY_IS_THE_CRYPTOCURRENCY_MARKET_NOT_WELCOMED_BY_THE_INDIAN_GOVERNMENT_REGULATORS\" title=\"WHY IS THE CRYPTOCURRENCY MARKET NOT WELCOMED BY THE INDIAN GOVERNMENT &amp; REGULATORS?\">WHY IS THE CRYPTOCURRENCY MARKET NOT WELCOMED BY THE INDIAN GOVERNMENT &amp; REGULATORS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#WHETHER_CRYPTO_IS_CONSIDERED_AS_A_CURRENCY_OR_NOT\" title=\"WHETHER CRYPTO IS CONSIDERED AS A CURRENCY OR NOT?\">WHETHER CRYPTO IS CONSIDERED AS A CURRENCY OR NOT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#INTERNATIONAL_SCENARIO_OF_BITCOIN_CRYPTO\" title=\"INTERNATIONAL SCENARIO OF BITCOIN (CRYPTO) \u00a0\">INTERNATIONAL SCENARIO OF BITCOIN (CRYPTO) \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#SITUATION_OF_BITCOIN_CRYPTO_IN_INDIAN\" title=\"SITUATION OF BITCOIN (CRYPTO) IN INDIAN \">SITUATION OF BITCOIN (CRYPTO) IN INDIAN <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#CRYPTO_VS_REVENUE_STUATION_IN_INDIAN\" title=\"CRYPTO VS REVENUE STUATION IN INDIAN \">CRYPTO VS REVENUE STUATION IN INDIAN <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#GST_on_Cryptocurrency\" title=\"GST on Cryptocurrency\">GST on Cryptocurrency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#Govt_clarification_on_position_cryptocurrency_in_India\" title=\"Govt clarification on position cryptocurrency in India.\">Govt clarification on position cryptocurrency in India.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#MCA_Update_on_Crypto\" title=\"MCA Update on Crypto\u00a0\">MCA Update on Crypto\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#Sumary_of_Crypto_Taxation_ITR_Reporting_Guide_India\" title=\"Sumary of Crypto Taxation &amp; ITR Reporting Guide (India)\">Sumary of Crypto Taxation &amp; ITR Reporting Guide (India)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27336\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Crpto.jpg\" alt=\"Cryptocurrency Taxation Scenario in India\" width=\"1080\" height=\"1028\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Crpto.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Crpto-300x286.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Crpto-1024x975.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Crpto-768x731.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Crpto-800x761.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cryptocurrency_Taxation_Scenario_in_India\"><\/span><span style=\"color: #000080;\">Cryptocurrency Taxation Scenario in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><span style=\"color: #ff0000;\">Introduction<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Bitcoin is a <strong><a href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/\"><span style=\"color: #0000ff;\">cryptocurrency<\/span><\/a><\/strong> created in 2008 by an anonymous individual or group of people using the name Satoshi Nakamoto. \u00a0When the currency&#8217;s implementation was launched as open-source software in 2009, it was put into use.<\/li>\n<li><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/basic-concept-of-bitcoin-taxation-in-indian\/\">The Bitcoin<\/a><\/strong><\/span> is a decentralized virtual currency that can be sent from user to user on the peer-to-peer bitcoin network without the use of intermediaries. It has no central bank or single administrator.<\/li>\n<li>Network nodes encrypt transactions, which are then recorded in a distributed public ledger known as a blockchain.<\/li>\n<li>Virtual currencies have been the focus of the decade, drawing the attention of tax authorities primarily due to the high prices at which they have been seen buying and selling on exchanges in India and around the world, and the regulatory mechanism of taxation must be determined because of the new legal landscape.<\/li>\n<\/ul>\n<h3 id=\"bythegovernment\"><span class=\"ez-toc-section\" id=\"WHY_IS_THE_CRYPTOCURRENCY_MARKET_NOT_WELCOMED_BY_THE_INDIAN_GOVERNMENT_REGULATORS\"><\/span><span style=\"color: #000080;\"><strong>WHY IS THE CRYPTOCURRENCY MARKET NOT WELCOMED BY THE INDIAN GOVERNMENT &amp; REGULATORS?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Bitcoin, Ethereum, and Mon-roe are examples of virtual currencies that operate in a gray environment in India. The government of India launched a moratorium on the cryptocurrency industry in December 2017.<\/li>\n<li>Tax officials sent notices to more than 5 lakhs crypto traders, in a measure that might result in massive tax profits.<\/li>\n<li>Since there is no clarification on their whole presence, representatives from India&#8217;s top 7 Bitcoin exchanges, including Unocoin, Zebpay, Btcx-India, and CoinSecure, approached the Authority for Advance Ruling (AAR).<\/li>\n<li>The RBI banned banks from working with cryptocurrency-related entities in April 2018. The Indian Govt has also released time-to-time warnings or alerts about the dangers of trading virtual currency.<\/li>\n<li>Regulators, on the other hand, have so far refrained from assigning them legal or illegal status.<\/li>\n<li>The Income-tax department provided the 1st clarification on this issue. According to them, crypto traders failing to pay taxes on any Assets.<\/li>\n<li>May results in attached penal consequences of tax implications, and a proposal has been drafted to which address this issue. This proposal contains a few significant tax provisions relating to cryptocurrency trading activity.<\/li>\n<li>The CBIC is considering a draft that will be presented to the GST Council for consideration of the matter.<\/li>\n<\/ul>\n<h3 id=\"currencyornot\"><span class=\"ez-toc-section\" id=\"WHETHER_CRYPTO_IS_CONSIDERED_AS_A_CURRENCY_OR_NOT\"><\/span><span style=\"color: #000080;\"><strong>WHETHER CRYPTO IS CONSIDERED AS A CURRENCY OR NOT?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Whereas many developed nations accept bitcoins as legal tender, many countries have banking bans on bitcoin, whether it is explicitly legal or illegal.<\/li>\n<li>Vietnam is one of them, allowing cryptocurrency trading but not accepting them as a tool of payment.<\/li>\n<li>However, In India, The Foreign Exchange Management (FEMA) Act, 1999 [Sec.2 (h)] describes the currency as currency notes, postal notes, postal orders, money orders, cheques, drafts, traveler&#8217;s cheques, letters of credit, bills of exchange and promissory notes, credit cards, and other related instruments as notified by the Reserve Bank of India.<\/li>\n<li>As a result of it, cryptocurrency be classified as currency under current definitions of FEMA?<\/li>\n<li>While the Reserve Bank of India has not declared Bitcoin to be legal tender, the fact that it is a widely adopted payment method is pertinent.<\/li>\n<li>As a result, the RBI should consider it as money rather than commodities. In India. digital assets may be categorized as &#8220;intangible assets,&#8221; similar to other software systems, with separate legislation enacted to prohibit and punish illegal use of cryptocurrencies (As the CBIC posits, the decision of the panel to levy GST on digital currencies could also be useful in regulating digital currencies).<\/li>\n<li>According to the RBI. Both the government and the RBI have stated that they have not authorized or issued regulations for any entity to deal with cryptocurrencies and that individuals who do so bear all risks. The Reserve Bank of India has issued several warning signs toward dealing with digital currencies.<\/li>\n<li>taxation will be simplified in case cryptocurrencies were classified as goods and Bitcoin exchanges&#8217; activities on behalf of consumers were treated as services.<\/li>\n<li>In conclusion, this new proposal will alter\/ modify the way India deals with virtual currencies.<\/li>\n<\/ul>\n<h3 id=\"international\"><span class=\"ez-toc-section\" id=\"INTERNATIONAL_SCENARIO_OF_BITCOIN_CRYPTO\"><\/span><span style=\"color: #000080;\"><strong>INTERNATIONAL SCENARIO OF BITCOIN (CRYPTO) \u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The way bitcoin is traded varies greatly depending on the nation. Bitcoin is treated as a currency in the USA and maybe either a fixed asset or an inventory asset.<\/li>\n<li>United Kingdom regards it as a &#8220;private currency.&#8221;<\/li>\n<li>On the other hand, Bitcoins are treated differently in Australia, varying from a traded asset to investment, with different treatment to the related services of as mining or trade facilitation.<\/li>\n<li>Singapore regards Bitcoin as legal money,<\/li>\n<li>However, Japan has taken it as a commodity in its country.<\/li>\n<\/ul>\n<h3 id=\"situation\"><span class=\"ez-toc-section\" id=\"SITUATION_OF_BITCOIN_CRYPTO_IN_INDIAN\"><\/span><span style=\"color: #000080;\"><strong>SITUATION OF BITCOIN (CRYPTO) IN INDIAN <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>RBI has suggested its own controlled institutions (such as banks) to hold\/stop providing any kind of service to business entities or individuals who used to purchase or sell cryptocurrencies for fiat (INR) on and off-ramps.<\/li>\n<li>This makes it prohibits to purchase or sell cryptocurrencies in INR from banks.<\/li>\n<li>Despite these prohibits, India ranks among the top 5 nations in the world in terms of currencies held (although these cannot be exchanged at the moment), with 44 percent of the global share.<\/li>\n<li>Given the uncertainty around Bitcoin and the fact that it is still in its early stages of growth, one thing is certain: Bitcoin will take time to gain widespread acceptance as a currency or medium of trade in India.<\/li>\n<li>This would result in the typical response of such exchanges, which is to relocate their headquarters outside of India, resulting in the loss of a significant amount of future tax revenues. The handling of bitcoins would be ideal if the government allowed the exchange of these currencies(Virtual cryptocurrency).<\/li>\n<li>Currencies should be regarded as current assets,&amp; the margins that bitcoin exchanges charge their customers should be subject to GST.<\/li>\n<\/ul>\n<h3 id=\"situation\"><span class=\"ez-toc-section\" id=\"CRYPTO_VS_REVENUE_STUATION_IN_INDIAN\"><\/span><span style=\"color: #000080;\"><strong>CRYPTO VS REVENUE STUATION IN INDIAN <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>This would ensure that Virtual cryptocurrency trade is regulated as well as increasing tax revenue to the Nation.<\/li>\n<li>In March, the Supreme Court set aside a 2018 RBI circular prohibiting banks &amp; financial firms from offering services related to cryptocurrencies.<\/li>\n<li>Recently, the RBI announced that it is investigating the feasibility of establishing a central digital currency (CBDC) to regulate the market, which could be a major development for the crypto market.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"GST_on_Cryptocurrency\"><\/span><span style=\"color: #000080;\">GST on Cryptocurrency<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p id=\"gstlevy\"><span style=\"color: #000080;\"><span style=\"color: #000000;\">The Govt of India is considering implementing an 18 % GST levy on bitcoin transactions, This development that could probably increase Rs 7,200 crore annual GST<\/span><strong>.<\/strong><\/span><\/p>\n<figure id=\"attachment_12670\" aria-describedby=\"caption-attachment-12670\" style=\"width: 1018px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12670\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-..jpg\" alt=\"Decoding Cryptocurrency in India\" width=\"1018\" height=\"1018\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-..jpg 1018w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-.-300x300.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-.-150x150.jpg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-.-768x768.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Decoding-Cryptocurrency-.-800x800.jpg 800w\" sizes=\"(max-width: 1018px) 100vw, 1018px\" \/><\/a><figcaption id=\"caption-attachment-12670\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Decoding Cryptocurrency in India<\/span><\/figcaption><\/figure>\n<ul>\n<li>According to The Times of India, the Central Economic Intelligence Bureau (CEIB) has sent a proposal to the Central Board of Indirect Taxes and Customs (CBIC) on the subject.<\/li>\n<li>As per survey, the CEIB estimates that bitcoin transactions in India are worth Rs 40,000 crore per year. The CEIB had researched the possibility of implementing GST on cryptocurrencies.<\/li>\n<li>According to The Times of India, the CEIB, a part of the finance ministry, said that bitcoins can be classified as &#8220;intangible assets&#8221; and considered as current assets. The CEIB recommended that margins made when selling cryptocurrencies be subject to GST.<\/li>\n<li>Bitcoin, the most expensive cryptocurrency, has increased by more than 400% in 2020-21, reaching a peak of more than $54000. in May 2021.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Govt_clarification_on_position_cryptocurrency_in_India\"><\/span><span style=\"color: #000080;\"><strong>Govt clarification on position cryptocurrency in India.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Anurag Singh Thakur, Minister of State for Finance, stated that in response to a question in the Rajya Sabha- whether the government collects income tax on cryptocurrency earing and also whether GST is collected from crypto exchanges.<\/li>\n<li>The gain from crypto trade and services by cryptocurrency exchanges are liable to be taxable, According to the government, because revenue from whatever source is obtained is included in the Income Tax Act, 1961, and supply of any service, if not expressly exempted, is taxable under the Goods and Services Tax (GST).<\/li>\n<li>\u201cRegardless of the nature of the business, total earnings for taxes shall include all income from whatever source derived&#8230;the gains resulting from the sale of cryptocurrencies\/assets are liable to tax under ahead of income,\u201d Mr. Thakur further explained.<\/li>\n<li>Similarly, \u201csupply of any service is taxable under GST if not expressly exempted, and no service related to cryptocurrency exchange has been exempted.<strong>\u201d<\/strong><\/li>\n<\/ul>\n<p>However, since there is no clause\/provision in the income tax return to collect data on crypto profits, the government does not keep track of them, according to the minister.<\/p>\n<ul>\n<li>The Central Board of Indirect Taxes and Customs (CBIC) assigns each service a special Services Accounting Code (SAC) under GST.<\/li>\n<li>GST collections specific to cryptocurrencies are available with the government, according to Thakur, so there is no specific SAC for cryptocurrencies<strong>.<\/strong><\/li>\n<li>The clarifications amid from government&#8217;s announcement earlier this week that cryptocurrencies could be controlled &amp; regulated in India.<\/li>\n<li>Companies operating with virtual currencies have compulsory now report profit or loss on crypto truncation, the Amount of cryptocurrencies Companies possess, and investments or advances by any person\/entity to sell or invest in cryptocurrency must be disclosed in their balance sheets,<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"MCA_Update_on_Crypto\"><\/span><span style=\"color: #000080;\"><strong>MCA Update on Crypto\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>According to the Ministry of Corporate Affairs. a notification was released on Wednesday. The ministry confirmed the amendments made in the Schedule III of the Companies Act, which will take effect on April 1, 2021.<\/li>\n<li>Thakur said in a written reply to a query in the Rajya Sabha that the government would take decide on recommendations of the Inter-Ministerial Committee&#8217;s (IMC) on cryptocurrencies in India.<\/li>\n<li>As a result, if there is a legislative proposal, it would be brought to Parliament<strong>.<\/strong><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Sumary_of_Crypto_Taxation_ITR_Reporting_Guide_India\"><\/span><span style=\"color: #000080;\"><strong>Sumary of Crypto Taxation &amp; ITR Reporting Guide (India)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___i31lg00 f10pi13n f14t3ns0 f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1hm93bs f1ddd56o f16vktn6 f1enuhaj fdclmfp f1ev3kgc ftgm304 f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f1s2k7dp f8fmt76 fjvbh62 fysh76l fic4ptz f1yenhzu f1yn6nvh f14tj6oe f1jq587y f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f70r78m f4zgifc fk1v6el f16pyhcb fo436u6 fzy4j18 fc43013 f1hmrcvb fc4t9fq fgp09rh fjnyn6r\" tabindex=\"0\">\n<thead>\n<tr>\n<th>Type of Crypto Activity<\/th>\n<th>Tax Rate<\/th>\n<th>Where to Report in ITR<\/th>\n<th>Loss Offsetting<\/th>\n<th>TDS Deducted<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th scope=\"row\">Crypto Trading<\/th>\n<td>30%<\/td>\n<td>Schedule VDA<\/td>\n<td>Not allowed<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Crypto Futures<\/th>\n<td>Slab Rate<\/td>\n<td>Business Income<\/td>\n<td>Allowed<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">INR-Margined Futures<\/th>\n<td>Slab Rate<\/td>\n<td>Business Income<\/td>\n<td>Allowed<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">USDT-Margined Futures<\/th>\n<td>30%<\/td>\n<td>Schedule VDA<\/td>\n<td>Not allowed<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Gifts (Crypto\/Airdrops)<\/th>\n<td>Slab Rate <em>(if &gt; \u20b950,000\/year)<\/em><\/td>\n<td>Income from Other Sources<\/td>\n<td>Allowed<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Airdrops<\/th>\n<td>Slab Rate<\/td>\n<td>Income from Other Sources<\/td>\n<td>Allowed<\/td>\n<td>No<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">P2P Transactions<\/th>\n<td>30%<\/td>\n<td>Schedule VDA<\/td>\n<td>Not allowed<\/td>\n<td>Buyer deducts<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">HODL (Holding Crypto)<\/th>\n<td>\u00a0Not taxable until sold<\/td>\n<td>Not reported<\/td>\n<td>Not applicable<\/td>\n<td>No<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<hr \/>\n<ul>\n<li>Gifts &amp; Airdrops: Taxable only if cumulative value exceeds \u20b950,000\/year.<\/li>\n<li>Future Sale of Gifts\/Airdrops: Gains taxed at 30%, and TDS will be deducted by the platform.<\/li>\n<li>Losses from crypto trading cannot be offset against other income.<\/li>\n<li>Schedule VDA is the dedicated section in ITR for reporting crypto assets.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><span style=\"color: #000080;\">CONCLUSION<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><em>In today&#8217;s scenario, cryptocurrency has the potential to strengthen the backbone of India&#8217;s digital infrastructure while also safeguarding all digital network transactions. <\/em><\/li>\n<li><em>This situation, levying taxes on cryptocurrency transactions should be viewed as a positive step rather than a constraint.<\/em><\/li>\n<li><em>If virtual currencies are treated as goods, some transactions will be taxed twice: once on supply (which would otherwise be exempt for a money transaction) and then again on consideration, resulting in higher taxation. <\/em><\/li>\n<li><em>This increased incidence of taxation places businesses operating in cryptocurrencies at a significant disadvantage, reducing their purchasing power. <\/em><\/li>\n<li><em>When it comes to international transactions, the situation becomes even more complicated.<\/em><\/li>\n<li><em>It is a two-way street for <a href=\"https:\/\/www.caindelhiindia.com\/blog\/top-10-cryptocurrency-and-its-features\/\">crypto transactions to be traced and used legally,<\/a> as well as for the government to generate revenue that can be used efficiently. <\/em><\/li>\n<li><em>It is also vehemently argued that imposing a tax on cryptocurrency as a policy matter can help to create an ideal environment in which traders can be assured that their money is safe and the risks associated with trading are minimized.<\/em><\/li>\n<\/ul>\n<p><strong><em>Also Read Articles :<\/em><\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/bitcoin-taxability-under-gst-act-2017\/\">Bitcoin Taxability under GST Act,2017<\/a><\/li>\n<li><em><u><a href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-on-21st-may-2019\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-on-21st-may-2019\/\">India\u2019s Latest Development on Crypto-Currencies<\/a><\/u><\/em><\/li>\n<li><em><u><a href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/all-about-cryptocurrency-taxation-scenario-in-india\/\">Cryptocurrencies Taxation Scenario in India<\/a><\/u><\/em><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/pm-modi-chairs-meet-on-cryptocurrency\/\">Pm modi chairs meet on cryptocurrency\u00a0<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/guidance-required-on-major-concern-in-crypto\/\">Guidance on major concern in Cryptocurrency<\/a><\/li>\n<li><em><strong><a href=\"https:\/\/carajput.com\/blog\/what-is-cryptocurrency-bill-2021\/\">What is cryptocurrency Bill 2021<\/a><\/strong><\/em><\/li>\n<\/ul>\n<blockquote class=\"wp-embedded-content\" data-secret=\"L3IfhW51wA\"><p><a href=\"https:\/\/www.caindelhiindia.com\/blog\/bitcoin-taxability-under-gst-act-2017\/\">Bitcoin Taxability under GST Act 2017<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Bitcoin Taxability under GST Act 2017&#8221; &#8212; India Financial Consultancy\" src=\"https:\/\/www.caindelhiindia.com\/blog\/bitcoin-taxability-under-gst-act-2017\/embed\/#?secret=StPSytI9Zd#?secret=L3IfhW51wA\" data-secret=\"L3IfhW51wA\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p><strong><em>Swatantra Kumar Singh is a Chartered Accountant and partner in charge of Rajput Jain &amp; Associates, New Delhi, one of the Fastest Taxation &amp; Financial consultancy Service Provider companies in Delhi. He can be reached at <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0\u00a0<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrency Taxation Scenario in India Introduction Bitcoin is a cryptocurrency created in 2008 by an anonymous individual or group of people using the name Satoshi Nakamoto. \u00a0When the currency&#8217;s implementation was launched as open-source software in 2009, it was put into use. The Bitcoin is a decentralized virtual currency that can be sent from user &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9891],"tags":[9419],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11979"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=11979"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11979\/revisions"}],"predecessor-version":[{"id":13514,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11979\/revisions\/13514"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=11979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=11979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=11979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}