Explained: Have you also invested in cryptocurrency? Then find out how the tax will be charged Have you ever invested in cryptocurrency, then know how the tax will be charged

Explained: Have you also invested in cryptocurrency? Then find out how the tax will be charged Have you ever invested in cryptocurrency, then know how the tax will be charged

According to tax experts, the income tax law covers all types of income except exempt income. Accordingly, income earned through cryptocurrency also falls under tax. (Have you ever invested in cryptocurrency, then know how the tax will be charged)

Explained: Have you also invested in cryptocurrency?  Then find out how the tax will be charged

Have you ever invested in cryptocurrency? Then find out how the tax will be charged

New Delhi Cryptocurrency tax rules: The Reserve Bank of India has not yet legalized cryptocurrencies (RBI on cryptocurrencies) in our country. Despite this, investor interest is growing. The number of cryptocurrency investors is increasing day by day. It is also rapidly gaining ground globally. Since cryptocurrency is not legally recognized, the Income Tax Department does not even talk about tax related regulations. However, tax experts say that cryptocurrency investors should not make the mistake of not paying tax on their earnings. (Have you ever invested in cryptocurrency, then know how the tax will be charged)

According to tax experts, the income tax law covers all types of income tax except exempt income. Accordingly, income earned through cryptocurrency also falls under tax. Experts say that cryptocurrency investors should pay tax on the income they receive, taking into account the nature of the investment.

Business income or capital gains?

Amit Gupta, managing director of SAG Infotech, said in a report published in the Mint that if an investor trades in cryptocurrency, he should pay tax on the proceeds. If he has invested in it, he should pay tax on the basis of capital gain.

How will capital gains tax be levied?

Amit Gupta says that if an investor invests in cryptocurrency three years ago and returns it, they come up with short-term capital gains tax. The tax rate for STCG is 15 per cent. If the investment is repaid after 3 years, it falls under Long Term Capital Gain (LTCG). LTCG is 20 per cent, but investors will benefit from the index.

Cryptocurrency transactions are not invalid

Pankaj Mathpal of Optima Money Managers says that although the RBI has not legalized cryptocurrencies, cryptocurrency transactions are not illegal in their country. In such a case the investor has to prove that the income from it is the income of the business or the income of the property class. Capital gains tax is levied if it is considered as an asset. The income from this is considered as income from other sources and tax can be collected accordingly, experts advise. (Have you ever invested in cryptocurrency, then know how the tax will be charged)

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