Earnings on cryptocurrencies
Income Tax Return: Over 4.
💵 Earn Interest on your Crypto 2020 - Crypto Interest Accounts (BlockFi, icoane-ortodoxe.com, Nexo, Celsius)
A lot in terms of regulations and taxation needs to be done. The RBI ruling, however, was set aside last year by the Supreme Court, paving way for investments in cryptocurrencies in India.
But due to the confusion, the nature of earnings from investments in cryptocurrencies has not been defined yet. So, there is no clarity on taxation of such earnings. Generally crypto currencies are used for exchange of goods or services.
Currently in India, crypto currencies are not recognised by RBI as a currency and similarly income tax law also does not define it as a currency. So, crypto currencies cannot be regarded as currency neither an India currency nor foreign currency.
- Fintech External what does this mean?
- Cryptocurrency trading has firmly taken its place in the financial market, and has been generating profits for professionals for many years.
- But, it should.
Therefore, for the purpose of income tax it will be regarded as property and tax implication will be similar if one is holding any other property. In ITR form disclosure of the profit or gain arising from crypto currency transactions need to be disclosed on the basis of the position earnings on cryptocurrencies by the taxpayer i.
Investing in cryptocurrency? The lack of clarification about the taxation on crypto earnings, however, may result into disputes.
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As on date, the Income Tax Act does not deal with taxation of crypto currency explicitly. However, we advise our users to consult with the experts like Chartered Accountants on how to declare these earnings in ITR.
- In India, the cryptocurrency industry is at a very nascent stage.
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