Key Points of a Crypto Tax
• 30% tax applicable on crypto trading, sales, or spending.
• It does not matter your income tax slab.
• 1% TDS on transactions above ₹50,000 (individual) and ₹10,000 (business).
• Investors in P2P and international transactions will have to comply on their own.
• Losses cannot be set off against any profit.
• Recognition of purchase cost only.
• All crypto gains must be reported in the “Virtual Digital Assets” section in the ITR.
Exemption from tax
• No tax on holding crypto in personal wallets.
• Crypto transfers between personal accounts.
• Exemption on gifts up to ₹50,000 or gifts received from close relatives.
Penalty on rule
• Penalty for filing wrong TDS.
• Imprisonment can be from 3 months to 7 years.
