We should talk about Crypto Taxes in India!

[aslisachin]

Hello Everyone,
Let me keep this thread on point.

So, I'm holding some crypto coins from around 2016, I've never bought them or trade them.
Some of them I've mined myself and some of them I've received as my freelance work payments.

I've researched almost every blog posts out there but haven't got any solution on If how much tax I have to pay on that.

Let's assume I have 1 Lakh Rupees worth of crypto, but I've never bought it from anywhere so that 1 Lakh is all my profit, so it means I have to pay 30,000 as taxes?

 

[CA Sunil Chahal]

Hello Everyone,
Let me keep this thread on point.

So, I'm holding some crypto coins from around 2016, I've never bought them or trade them.
Some of them I've mined myself and some of them I've received as my freelance work payments.

I've researched almost every blog posts out there but haven't got any solution on If how much tax I have to pay on that.

Let's assume I have 1 Lakh Rupees worth of crypto, but I've never bought it from anywhere so that 1 Lakh is all my profit, so it means I have to pay 30,000 as taxes?

Taxation on Mined Crypto:

• Mined crypto is considered income and taxed at a flat 30% rate on the fair market value of the coin at the time of mining.
• There's no provision to deduct mining expenses like electricity or hardware costs.

Taxation on Freelance Income in Crypto:

• Crypto received as payment for freelance work is also considered income.
• You might be taxed differently depending on whether you report it as business income or capital gains.

On Your 1 Lakh Rupee Example:

• If the entire 1 Lakh Rupees is from mined crypto at the fair market value in 2016, you might owe 30% tax on that 2016 value.
• However, for crypto received as freelance payment, the tax treatment (business income vs capital gains) and the applicable tax rate could differ.

DISCLAIMER
The information provided here regarding your tax issue is for informational purposes only and should not be considered as legal advice. My suggestions are based on my understanding.