What is the tax system for cryptocurrency in India ?

Currently, India does not have a strong tax specification, regarding cryptocurrency. However, tax laws have translated into cryptocurrency its properties. Profits from crypto are not treated as regular payments, they are treated as assets like gold, instead of money.

Crypto taxes in two ways, depending on how you handle it, such as investing or trading stocks. If you take it as an investment, and based on the holding period, you will have to pay for long-term or short-term capital benefits.

And if you treat them as a Stock in a trade, you will be liable to pay tax on the profits earned as income from the business.

The capital gains tax is levied on the cryptocurrency, up to the time of ownership of the asset, which means that the term of the holder of the cryptocurrency determines based on the holding period, you will have to pay a long-term or temporary fee. benefits.

And if you treat them as a Stock in a trade, you will be liable to pay tax on the profits earned as income from the business.

The capital gains tax is levied on cryptocurrency, up to the time of ownership of the assets, which means that the term of the person in charge of the cryptocurrency determines the effective tax rate. If the repayment period is less than 36 months, it is considered a short-term cash benefit and if the repayment period is more than 36 months, it is considered a long-term cash benefit.

Revenue generated from cryptocurrency transactions is listed as ‘revenue from other sources’ in the future and is tax-free.

The GST rules for cryptocurrency are unclear, yet. The crypto trade in India has been asking for a clear view of digital monetary regulation in the RBI and there have been no major updates so far.