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Monday, June 17, 2024
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Airdrops, mining, staking? How is income tax calculated on crypto gains?



The Union finance minister has introduced a new tax regulation in Budget 2022, making gains from crypto trading taxable at 30% starting from April 1, 2022. However, calculating crypto gains is complicated due to various transactions involved, such as staking, mining, airdrops, and trading. Experts recommend keeping track of transactions and using the correct Income Tax Return (ITR) form based on the crypto use case. Determining the cost price of crypto is challenging as exchanges work independently and lack uniformity in pricing. Additionally, decentralized transactions require parsing the blockchain to determine the transaction value. Exchanges face difficulties providing capital gains statements due to factors like transferred assets and the lack of fair market value tracking. It is crucial to declare crypto assets correctly to avoid tax notices, and certain transactions like wallet transfers and gifts up to 50K are non-taxable.

Source: Crypto Mining News - Bing


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