What are the tax implications of exchanging Indian money for cryptocurrencies?

1 answers

• Mar 15, 2022 · 3 years ago
  At BYDFi, we understand that exchanging Indian money for cryptocurrencies can have tax implications. According to the Indian Income Tax Act, cryptocurrencies are treated as assets and are subject to taxation. When you exchange your Indian money for cryptocurrencies, it is considered a sale of assets and you may be liable to pay capital gains tax on the profit you make. The tax rate depends on the holding period of the cryptocurrencies. If you hold the cryptocurrencies for less than 36 months, the gains are considered short-term and are taxed at your applicable income tax slab rate. If you hold the cryptocurrencies for more than 36 months, the gains are considered long-term and are taxed at a flat rate of 20%. It is important to consult with a tax professional and ensure that you comply with all the tax rules and regulations to avoid any legal issues or penalties.
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