Best to convert crypto into INR

[hoodedRobin]

Hi,

I was away from crypto for years now. So what is the best way to convert crypto into Indian rupee nowadays?
Also how is the tax handled?

 

[sayandeb]

Converting cryptocurrency to Indian Rupees (INR) can be accomplished through several methods. But one of my recommended method is:

Cryptocurrency Exchanges: Platforms like WazirX, Binance, Kraken, and Coinbase (or from the same exchange where you previously bought those Cryptos) facilitate the sale of cryptocurrencies for INR. After selling, you can withdraw the funds directly to your Indian bank account.

Tax Implications in India:

• Flat Tax Rate: As per the Finance Act 2022, income from the transfer of virtual digital assets, including cryptocurrencies, is taxed at a flat rate of 30%, irrespective of the holding period.
• Tax Deducted at Source (TDS): A 1% TDS is levied on cryptocurrency transfers exceeding ₹50,000 (or ₹10,000 in certain cases) within a financial year. This TDS is applicable from July 1, 2022.
• No Loss Offsetting: Losses incurred from cryptocurrency transactions cannot be offset against other income. Additionally, losses from one virtual digital asset cannot be set off against gains from another.
• Gifts and Airdrops: Receiving cryptocurrency as a gift is taxable if the total value exceeds ₹50,000 in a year. Airdropped tokens are also subject to taxation based on their fair market value upon receipt.

Recommendations:

• Bank Communication: Inform your bank about expected large transactions from cryptocurrency sales to prevent potential account freezes. Providing advance tax payment receipts can further ensure smooth transactions.

Always stay updated with the latest regulations and consider consulting a tax advisor to ensure compliance with Indian tax laws.

** Some of the details are fetched from AI data source and online available data. Before making any decision DYOR

 

[hoodedRobin]

uff AI