#IndiaCrypto India's 30% tax on cryptocurrency gains isn't the only thing to consider. Here's what you need to know:
Tax Rate: A flat 30% tax applies to gains from cryptocurrency transactions, regardless of whether they're considered capital gains or business income. This rate applies to both short-term and long-term gains.
TDS (Tax Deducted at Source): A 1% TDS is deducted from sale considerations exceeding ₹50,000 in a financial year (or ₹10,000 in some cases). This TDS rate applies to various transaction types, including buying with INR, trading on Indian exchanges, and peer-to-peer transfers.
Losses: Losses from cryptocurrency transactions can't be offset against other income, including gains from other cryptocurrencies.
Gifts and Airdrops: Receiving cryptocurrency as a gift or airdrop is taxable. Gifts from relatives are exempt, but gifts from non-relatives exceeding ₹50,000 are subject to tax at regular slab rates. Airdrops are taxed at 30%.
Mining and Staking: Mining and staking income is taxed at a flat 30%. The cost of acquisition for mined cryptocurrencies is considered zero, and expenses like electricity aren't deductible.
To navigate these tax implications, consider consulting a tax expert or using crypto tax software to track your transactions and calculate taxes accurately ¹.