As per Income Tax Act, you need to pay taxes on your Income. Union Minister of State (MoS) Sri Anurag Thakur said *the gains arising from the transfer of cryptocurrencies/ assets is liable to tax under a head of income. ft The Income Tax Act is designed such a way that the income from crypto is still taxable. Let’s Analyse:
|
Type/Purpose |
Taxable under |
Tax Rate |
|
Frequent buying and selling to earn profits/Trading |
Profits and Gains from business or profession |
Slab Rate i.e. Up to 2.5 L - Nil 2.5 to 5 L - 5 % 5L to 10L - 20% 10 L above - 30% |
|
Staking, Farming, Airdrop (if whole time into these activities) |
||
|
Staking, Farming, Airdrop (if nominal and no other income) |
Income From other sources |
|
|
Income from Crypto mining |
||
|
Investment for less than 36 months |
Capital Gain |
|
|
Investment for More than 36 months |
Capital Gain |
Flat 20 percent |
Profits and Gains from business or profession:
If value of transaction don't cross Audit Threshold (1crore usually) limit then you may opt for Presumptive scheme (6% of turnover deemed profit) or you may consult local CA for Audit
If the total INR Value of transaction in crypto crosses the specific audit limit, then contact local CA and ask them to do Audit. They will assist you.
Income From other sources:
Include the earning of crypto with all other income and pay taxes as per slab rate.
Capital Gain: Taxes will be paid depending upon the period of holding as stated in above table
