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Taxation on Cryptocurrency - Bitcoin, Ethereum & More Taxation

If you have questions like "How is my cryptocurrency taxed?" "How are my gains and losses taxed?" or "How much is the tax on my cryptocurrency sales?"

Don't worry if you have any of these concerns; we've got you covered. Check out our free Cryptocurrency Tax Interactive Calculator, which will answer all of your questions about cryptocurrency transactions and provide you with an estimate of how much your gain will be taxed in just one screen.

What is Cryptocurrency?

 

A cryptocurrency is a type of digital asset or a form of digital money that is decentralized and based on blockchain technology. Although you may be aware of the popular & well-known, Bitcoin and Ethereum, there are over 17,000 distinct cryptocurrencies in use.

 

What is a virtual digital asset?

 

A virtual asset is a digital representation of value that can only be accessed over the internet. It is saved and transacted via special software, mobile apps, or computer programmed.

 

How To Use IBG Cryptocurrency Tax Calculator?

 

To use the IBG cryptocurrency tax calculator, all you have to do is, follow the below-mentioned steps:
  • Select the financial year
  • Enter sale value of the digital currency
  • Enter the cost of acquisition of cryptocurrency

You will see the total amount of loss/gain you have made and the amount of tax that you need to pay.

Is there any tax on cryptocurrency in India?

 

Yes, in the budget 2022, the finance minister announced that the cryptocurrency transactions will be taxed at 30% from FY 2022-23. Earlier also it was taxed but was not regulated properly. From the year 2022, all the transactions must be reported and will be taxed at the hands of the recipient.

 

From when will the tax on cryptocurrency be applied?

 

This amendment will take effect from April 1 2022 and will accordingly apply.

 

What is the tax rate on cryptocurrency in India?

 

The income gained from cryptocurrencies is taxed at a flat rate of 30%.

 

Is there any TDS deduction?

 

Yes, 1% TDS will be deducted. In addition to TDS deductions, gifts of digital assets are also taxed on the recipient's hands.

 

Can I set off losses made in cryptocurrency?

No, you cannot set off your losses in cryptocurrency for any other income. Also, it cannot be carried forward.

 

Is NFT taxed as Cryptocurrency?

Yes, all digital assets are taxed at a flat rate of 30%.

 

I received cryptocurrency as a gift. Will I have to pay the tax?

Yes, gifts of crypto assets will be taxed in the recipient’s hands

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