In India, cryptocurrency is categorized as a Virtual digital asset and is subjected to tax. The Income from buying and selling cryptocurrency is taxed at the rate of 30% (plus 4% cess) as per section 115BBH. Section 194S imposes a 1% tax deducted at source (TDS) on the transfer of crypto assets from July 01, 2022, if the transaction exceeds 50,000 inr (or 10,000 inr in some cases) in a similar financial year. Crypto taxes apply to all investors, whether private or corporate, who transfer digital assets every year. The rate of tax is similar for short-term and long-term income, and it applies to any type of gain received by the investor.
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