How should cryptocurrency be taxed in India? Here are some thoughts
Market News Are gains from cryptocurrencies taxable?- Tax authorities around the world have been working to carve out rules of taxation for cryptocurrencies.
Even though cryptocurrencies are not mentioned in the Indian income tax act and there are no rules defined yet, you must report them in your income tax return and pay tax on them.
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Should they be treated as capital assets in India?- Countries such as the UK and USA have laid down that cryptocurrencies should be treated like capital assets. The definition of capital assets in the Indian income tax act is a more inclusive one and will therefore cover assets that may not be separately defined.
Such assets may be treated as long term assets when held for a period exceeding three years and short term assets when held for less than 3 years time period. It may be reasonable to allow indexation @ 20% for the cost of acquisition...Read more.
