Q. How crypto is taxed in India?
As per Section 115BBH of the act. where the total income of an assessee includes any income from the transfer of any virtual digital assets (crypto-currencies) such gains shall be taxed at the rate of 30% plus applicable surcharge & cess.
For Example:
Tax calculation on Crypto Gains:
| Sale Value of Crypto-currency | ₹10,00,000 |
| Purchase Value of Crypto Currency | ₹8,00,000 |
| Gains from Crypto Currency | ₹2,00,000 |
| Tax on Above @30% | ₹60,000* |
* Above tax is subject to Surcharge & cess (if applicable).
Q. Whether VDA Incomes are Capital Gain income or Business Income?
When you are regularly trading in crypto currencies and are involved in activities like mining and selling of crypto currencies, then income from such activities will be treated as business income.
When you are holding crypto currencies as an investment for some long term/short term gains, then such gains will be treated as Capital Gains.
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