🇮🇳 Understanding Crypto Tax in India 📊💸
Since its introduction in 2022, crypto taxation in India has been a game-changer. Here’s what you need to know:
1️⃣ **Classification**: Cryptos, including NFTs, are classified as Virtual Digital Assets (VDAs).
2️⃣ **Tax Rates**: Gains from VDAs are taxed at 30% + 4% surcharge under Section 115BBH. Plus, a 1% TDS applies on transactions exceeding ₹50,000.
3️⃣ **Specific Taxes**:
- **Airdrops**: Taxed at 30% under income from other sources.
- **Mining**: Mining income taxed flat at 30%.
- **Staking & Rewards**: 30% tax on earnings and capital gains on sales.
4️⃣ **Regulatory Landscape**: After regulatory changes in 2020, the market saw a surge, but recent tax policies have impacted trading volumes and investor sentiment.
5️⃣ **Anticipations**: Ahead of Union Budget 2024, expectations include lower TDS rates and clearer regulations for a more crypto-friendly environment.
Navigating crypto taxes? Stay informed and consult experts for strategic investing. 🚀