Read the story here. Advertise at Before It's News here.
Profile image
Story Views
Last hour:
Last 24 hours:

How Cryptocurrencies Are Taxed In India

% of readers think this story is Fact. Add your two cents.


In India, cryptocurrencies and non-fungible tokens (NFTs) are currently unregulated. While the Reserve Bank of India (RBI) had aimed to restrict cryptocurrencies in 2018, the Supreme Court suppressed the tried ban leaving cryptocurrencies in regulatory limbo – neither prohibited nor, precisely saying, permitted. NFTs do not seem to have drawn the same level of regulation as cryptocurrencies but sorrow from the exact indefinite legal presence as cryptocurrencies.


While there have been announcements of a complete Cryptocurrency Bill, no such Bill has been constructed for general and the Government of India’s procedure for cryptocurrencies stays ambiguous. There does not seem to be a movement to substantively control NFTs as previously. While the Government persists to consider its view on cryptocurrencies and NFTs, it has, temporarily, executed a unique taxation rule desired in taxing profits and, or, revenue from virtual digital assets (VDAs) – i.e. cryptocurrencies, NFTs and identical tokens, and additional investments that the Government may determine. As an outcome, there is currently a tax on cryptocurrency of 30% plus a tariff and cess on the movement of any VDA such as Bitcoin, Binance, or Ethereum underneath the Income Tax Act, 1961 (Income Tax Act). However, the lawful status of cryptocurrencies is yet undefined.


How The Latest Tax on Revenue from Virtual Digital Assets (VDAs) Works

The Income Tax Act was modified and was taken into consideration from April 1, 2022, to supply for the surcharge of earnings and, or revenue emanating from VDAs. Binocs can be taken into effect for estimating taxation on crypto, as it is one of the best crypto tax software. Beneath the Income Tax Act, VDAs are:

  • Cryptocurrencies not existing Indian or foreign money – the precise wording operated beneath the Income Tax Act is “ any data or program or digit or token, developed via cryptographic norms or otherwise, by whatever title called, delivering a digital replica of worth traded with or without care, with the contract or declaration of having intrinsic worth, or parts as a stock of value or a unit of account including its service in any monetary trade or investment, but not restricted to an investment scheme.

  • Curiously, the Income Tax Act does not note either blockchain or DLT in the description of VDAs. The Central Government has to report the NFTs, receipts, or other VDAs to which the requirements of the Income Tax Act will involve. While it may, therefore, be proclaimed that the latest tax authority currently involves no NFTs, there is a likelihood that the taxation management will select to tax NFTs beneath the cryptocurrency head as the description includes tokens and may be deemed wide enough to contain NFTs.

  • The Income Tax Act further confuses issues by demanding that, where a citizen shares a VDA for review, the individual liable for expending that consideration must subtract 1% of the payment at origin as revenue tax on cryptocurrency. The provision to remove 1% of the payment lies irrespective of whether the consideration is in money, partially in currency, partially in consideration for another VDA, or in consideration for only another VDA. 

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.