If you earn from cryptocurrency then how much tax will you have to pay, understand this math

The trend of cryptocurrency is increasing rapidly. Bitcoin, Ethereum, Litecoin, Dodgecoin etc. are digital currencies. People have started investing heavily in it. But the situation of cryptocurrency in India is a bit complicated. In India, if you make profit by selling cryptocurrency, then you have to pay tax on it.#BinanceAlphaAlert #BTCXmasOrDip? #XmasCryptoMiracles #Crypto2025Trends $BTC

The trend of cryptocurrency is growing rapidly. Bitcoin, Ethereum, Litecoin, Dodgecoin etc. are digital currencies. People have started investing heavily in it. But the situation of cryptocurrency in India is a bit complicated. In India, if you make profit by selling cryptocurrency, then you have to pay tax on it. The government has classified them as "Virtual Digital Assets" (VDA). Income from cryptocurrency is taxed in India. The government has clarified this in the budget for the year 2022. The government had announced to impose 30% tax on VDA.The math of tax

If you make a profit by selling cryptocurrency, then 30% tax will be levied on it. Apart from this, 1% TDS (Tax Deducted at Source) has also come into effect from July 1, 2022. It will be deducted on crypto transactions. If you make transactions of more than ₹ 50,000 in a financial year, then TDS will be deducted on it. When you sell cryptocurrency and you make a profit, then 30% tax will be levied on it. For example, suppose you bought crypto for ₹ 1,00,000 and sold it for ₹ 1,50,000, then there was a profit of ₹ 50,000. You will be charged 30% tax (₹ 15,000) on this.Taxes on Mining and Airdrops

When you sell crypto to someone, 1% TDS will be deducted on it. Crypto is available for free in airdrops. If you get crypto from an airdrop and it is traded on an exchange, then it will be taxed at 30%. At the same time, the income from crypto mining has also been kept under the purview of 30% tax. The price of crypto obtained from mining will be taxed, but no expenses in this will be considered as a deduction.