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Author: Admin | 2025-04-28
You won't pay tax on your crypto in India when you're:HODLing cryptoTransferring crypto between your own walletsReceiving a gift of crypto up to RS50,000 from friends and relativesReceiving a gift of crypto of any amount from close family membersThe ITD has not offered clear guidance on lost and stolen crypto. But based on various judgments passed by Indian courts on loss/theft of other kinds of assets, there is no tax payable on the crypto lost as a result of a hack, scam, or theft.However, given the ITD’s harsh stance on offsetting crypto losses against gains, it’s very unlikely investors could claim and offset a loss from a lost/stolen crypto asset.Generally speaking, you'll pay tax when you receive a gift of crypto - unless it's from a specific person(s) or under a certain amount. Gifts of crypto from close family members are tax free, and gifts under RS50,000 from friends and relatives are tax free.If you receive a gift of crypto - whether that's coins, tokens, or an NFT - you'll generally be liable to pay Income Tax at your applicable slab rate, based on the fair market value of your gift.This said, there are a couple of exceptions when you won't pay tax when receiving a crypto gift:Gifts made from close family members (parents, spouse, siblings of taxpayer and spouse, lineal ascendant or descendant of taxpayer and spouse) are not taxed on receiptGifts less than RS50,000 in a single financial year are not taxed on receiptGifts received as a result of a marriage or via inheritance are not taxed on receiptExamplesSanjay receives RS10,000 in BTC from his father. Neither Sanjay nor his father needs to pay tax.Sanjay receives RS10,000 in BTC from a friend. Neither Sanjay nor his friend needs to pay tax as it is not over the RS50,000 gift allowance per financial year.Sanjay receives RS60,000 in BTC from a friend. This is more than the RS50,000 allowance and therefore Sanjay will need to pay tax upon receipt, but his friend does not.Sanjay receives RS10,000 BTC from a friend as a wedding gift. Neither Sanjay nor his friend needs to pay tax as wedding gifts are not taxed.You know you'll pay a flat 30% tax on your profits, but how do you calculate your profits? You need to start by figuring out your cost basis.Your cost basis is how much it cost you to buy your crypto, or the fair market value in INR of the crypto on the day you received it. Unlike most other tax offices, the ITD does not allow you to add things like buy or sell fees to your cost basis.Once you know your cost basis, subtract this from your sale price. If you
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