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Author: Admin | 2025-04-28
Uday Deb--> The cryptocurrency landscape in India has witnessed significant developments in recent years, particularly in terms of taxation. For instance, the 2022 Financial Budget introduced new laws and regulations regarding cryptocurrency taxation in India, making it difficult to keep up with the changes.But don’t worry. This guide aims to provide comprehensive information on the tax laws regarding cryptocurrencies in India, covering multiple scenarios such as trading, airdrops, mining, NFTs, crypto donations, and more so that you don’t have to spend your precious time looking up tax laws for different scenarios. But before that, let’s understand what’s Virtual Digital Assets (VDA). Virtual Digital Assets (VDAs):To understand the taxation of cryptocurrencies in India, it is essential to understand the concept of virtual digital assets (VDAs). These assets exist in digital form but hold significant value similar to physical assets. Examples of VDAs include Bitcoin and Ethereum.Taxation of cryptocurrencies:Before 2022, cryptocurrencies and related virtual assets were not subject to taxation in India. The 2022 Financial Budget introduced changes in this regard. Investors and traders are liable to pay a 30% tax (plus applicable surcharge and 4% cess levied by the Central Board of Direct Taxes) on the profits arising from the transfer of crypto assets on or after April 1, 2022. Section 194S of the Income Tax Act also imposes a 1% Tax Deducted at Source (TDS) on the transfer of crypto assets if the transaction exceeds INR 50000 and INR 10000 in certain cases in the same financial year. Indian exchanges
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