Cryptocurrency and tax
Cryptocurrency is treated as property for tax purposes. There are no special tax rules for cryptocurrencies — ordinary tax rules apply.
How to tax cryptocurrency
Crypto enthusiasts
miners:
Trading on Foreign crypto-exchanges
Tax compliance
Incomes identified above shall need to be reported in the annual income tax return along with any other income the individual may have earned during the financial year.
Scrutiny Assessment
The Indian Income Tax Department is empowered by law to requisition data which may help in determining tax liabilities of Indian residents. Moreover, the Indian Government is a member of the “automatic exchange of information” mechanism, set-up by the OECD, which enables cross-border sharing of taxpayer’s information amongst member countries. The tax department can well utilise these powers and issue notices to investors/traders/miners who have not filed accurate taxes.
Note : reporting of income generated from cryptocurrencies and filing taxes accordingly is strongly recommended.
Credit and Reference :
- Coin crunch : https://coincrunch.in/
- Quagmire Consulting
