Cryptocurrency: Important Rules to Calculate Tax in Crypto

Crypto Trading: In India, the new section attached to the cryptocurrency, the Finance Act 2022, comes under 115 BBH. Under which virtual digital assets transfer, i.e. including cryptocurrencies and NFTs, have been brought into the tax slab, which means, even if you cannot buy anything in crypto in India, it has been considered as a digital asset class. According to the rules, investors are taxed for 30% tax. If someone invests more than Rs 50,000 in crypto, then he has to pay a TDS according to 1% tax. Apart from this, the investors are taxed for trading, selling, profit booking and swapping of cryptocurrency. 

How to Calculate Crypto Tax

For example, if you invest Rs 1 lakh in cryptocurrency and earn Rs 1.5 lakh from it, you must pay 30% tax on the Rs 50,000 profit when you sell it. However, if you do not invest in cryptocurrency trading, you will be unable to deduct any profits. You must pay taxes on any profits you make. If you don't make a profit, the loss is entirely yours.