🇮🇳 Navigating Crypto Tax in India 📊💸
Since its introduction in 2022, crypto taxation in India has had a major impact. Here’s a breakdown:
1️⃣ Classification: Cryptos and NFTs are considered Virtual Digital Assets (VDAs).
2️⃣ Tax Rates: Gains from VDAs are taxed at 30% plus a 4% surcharge (Section 115BBH), with a 1% TDS on transactions over ₹50,000.
3️⃣ Specific Taxes:
- Airdrops: Taxed at 30% under 'Income from Other Sources'.
- Mining: Flat 30% tax on mining income.
- Staking & Rewards: 30% tax on earnings and capital gains on sales.
4️⃣ Regulatory Landscape: The market saw a boost after 2020 regulatory changes, but recent tax policies have affected trading volumes and investor sentiment.
5️⃣ Looking Ahead: With the Union Budget 2024 approaching, there are hopes for lower TDS rates and clearer regulations for a more crypto-friendly environment.
Stay informed and consult experts for strategic investing in this evolving tax landscape! 🚀
