Important Update Crypto Tax Update

💰 India Crypto Tax Update 2023-24

Key points every crypto investor must know

1. Flat Tax Rate on Crypto Gains

All crypto transactions are taxed at 30% flat rate + applicable cess and surcharge, regardless of holding period (no benefit for long-term holdings).

2. 1% TDS on Crypto Transactions

1% TDS deducted at source for all crypto transfers above ₹10,000 (₹50,000 for specified persons) per transaction. Deducted by exchange/platform and deposited to government.

3. TDS Return Filing Period

TDS returns must be filed quarterly:
Q1 (Apr-Jun) – Due by 31st July
Q2 (Jul-Sep) – Due by 31st Oct
Q3 (Oct-Dec) – Due by 31st Jan
Q4 (Jan-Mar) – Due by 31st May

4. No Loss Set-off Allowed

Crypto losses cannot be set off against other income sources (unlike equity losses). Losses can’t be carried forward either.

5. Gift Tax Implications

Receiving crypto as gift is taxable under “Income from Other Sources” if value exceeds ₹50,000 in a year (taxed at recipient’s slab rate).

6. Mining & Staking Taxation

Crypto earned through mining/staking is taxed as business income (if regular activity) or other income, valued at acquisition price.

7. Mandatory Disclosure in ITR

All crypto holdings and transactions must be disclosed in Schedule VDA of Income Tax Return (ITR), even if no tax is payable.

⚠ Important: Non-compliance with TDS provisions attracts penalty of ₹50,000 + 100% of TDS amount. Late ITR filing attracts ₹5,000 penalty (₹1,000 if income < ₹5 lakh).