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Author: Admin | 2025-04-28
Institutions can only be claimed if the donation is made through banking channels or in cash up to RS2,000.As crypto is not a legal tender in India, donations will not be tax deductible. In fact, your generous act will likely be treated as a disposal of an asset and any perceived profits are subject to 30% tax.The ITD has not released dedicated guidance on crypto mining tax yet. But it's likely the ITD may consider this additional income. As such, you'll pay Income Tax at your individual rate based on the fair market value of your crypto in INR. If you later sell, swap, or spend your mining rewards and make a gain, you'll also be liable to pay a 30% tax on that gain.Crypto miningINCOME TAXYou’ll pay Income Tax at your individual rate based on the fair market value of mined coins in INR on the day you receive them.Worse still, if you later sell, swap, or spend mined coins, you’ll also be liable for 30% tax on any profit.As there is no clarity from the ITD, we'd recommend consulting an experienced accountant on the potential tax implications of crypto mining activities.The ITD has not released dedicated guidance on crypto staking tax yet, but it's likely the ITD may consider this additional income. As such, you'll pay Income Tax at your individual rate based on the fair market value of your crypto in INR. If you later sell, swap, or spend your staking rewards and make a gain, you'll also be liable to pay a 30% tax on that gain.Crypto stakingINCOME TAXAgain, the ITD hasn't released any guidance on staking rewards and the tax implications yet. But it's likely if you're staking as part of a PoS consensus mechanism, you'll need to pay Income Tax at your individual rate upon receipt of staking rewards based on the fair market value in INR on the day you receive tokens.You will also be liable for 30% tax on any profit when you later sell, swap, or spend your staking rewards.The Indian government has not yet clarified how, if at all, GST may apply to crypto. Currently, the GST Act does not define or refer to VDAs. However, it is only the supplier of goods who should levy and collect GST. The largest Indian crypto exchanges are currently seeking clarification on the applicability of GST for crypto assets.The financial year (FY) in India runs from April 1st to March 31st the following year. You'll report all your income - including from crypto - for this period by July 31. If you're undergoing an audit, this deadline is extended until October 31. A belated return may be filed by December 31.This means the
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