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How does 30% Tax on Cryptocurrency Work?
Suppose you originally bought Rs.
1 Lakh worth ofBitcoin.
The prices of Bitcoin went to the moon, and now your holding is worth Rs.
Now you cash out the profit and sell all of the bitcoin for Rs.
Here the total profit is Rs.
As per the proposed 30% tax on Cryptocurrency profit, you will have to pay Rs.
30,000 to the government and the remaining Rs.
70,000 goes to you.
Can I set off the Cryptocurrency losses while computing Income?
The answer is NO.
Do you have to pay taxes on crypto if you dont sell?
Only when you sell it for profit will it be taxed at 30%.
Will I have to file and pay Crypto tax even if I am not in taxable slab?
In a nutshell, you will need to pay taxes on profits arising out of cryptocurrency.
If sell Crypto in Loss, Will I need to Pay Tax?
You will NOT be liable to pay taxes on losses incurred by selling cryptocurrency holdings.
The proposed Crypto tax(Virtual Digital Assets) will come into effect from April 1, 2022.
Is Cryptocurrency tax separate from income tax?
Many crypto supporters have welcomed the move of taxation, citing the currencys legitimacy by law.
Are we going the China way of a comprehensive clampdown or find a more liberal path?
It will be interesting to see how things pan out.
source: www.techworm.net
