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ITR Filing 2024: How is income from Cryptocurrency taxed in India, and what are the rules of the Income Tax Department


The date for filing an Income Tax Return (ITR Filing 2024) is near. In such a situation, while many taxpayers have filed returns, many taxpayers will still file ITR.

Many investors in the country invest in cryptocurrency. Although it is not yet legal in India, the crypto investor has to give this information to the Income Tax Department. If we talk about the returns of cryptocurrency, investors are getting better returns in it. In a way, it has become a ‘multi-bagger return’ asset.

The way shares are bought and sold through the Demat Account. Well, similarly cryptocurrency can also be bought or sold. In India, you are not allowed to make any kind of payment through crypto.

Let us know what rules have been made by the Income Tax Department regarding cryptocurrency.

How is tax charged?

Even though the Indian government has not recognized cryptocurrency, it has been recognized as a digital asset class. Let us tell you that cryptocurrency in India comes under the category of capital gains taxation.

How is tax calculated?

According to Section 115BBH of the Income Tax Law, cryptocurrency comes in the digital asset class. The investor has to pay tax at the rate of 30 percent on this. If an investor invests more than Rs 50,000 in crypto, he also has to pay TDS at the rate of 1 percent.

Apart from this, the taxpayer also has to pay tax on trading, selling, profit booking swapping, etc. of cryptocurrency.

For example, if you buy crypto worth Rs 100,000 and sell it for Rs 150,000, then you have to pay a 30 percent tax on the profit of Rs 50,000. However, if you suffer a loss in crypto trading then you cannot claim deduction to compensate for it.