New Delhi: The whole world is going the crypto way as these back-to-back covid lockdowns have made people realize the significance of having a passive/second income. Some invested in IPOs, a few started their own business from their home while a lot of people choose to invest in Cryptocurrencies. People are buying different cryptocurrencies for various purposes, some are engaged in day-to-day trade while some call themselves the long-term holders.
There are various ways to own a Cryptocurrency, you can buy it with your capital investment or you can also mine it by solving cryptographic equations with powerful computer systems. Even though how many crypto coins you own the main agenda ever has been is to book a good profit over the time.
Early investors got a great opportunity to make satisfactory returns from the virtual tokens and the search which began from ‘How to Invest in Crypto?’ now has been reached to the question ‘How much tax do I pay on Crypto gains?’
The Crypto space is expanding among the younger generation and with that, some important questions that usually arise are ‘Are cryptocurrencies taxable?’ And if they are then, ‘How much tax do I have to pay over the gains?’ It is equally important to clear out the doubts about the hype made around the profitability and taxability of the virtual coin market.
To ensure a safe crypto trading space, the Indian government is likely to roll out guidelines or legislative frameworks regarding cryptocurrencies in the country which will also include a new taxation system.
As per the report, the government may allow the use of cryptocurrencies as assets and prohibit their use as a currency in the country which means the people may not be able to use cryptocurrencies for transactions in India. There is a chance that the government will also introduce a tax on the trade of cryptocurrencies. Though the government can also introduce 1 per cent GST on crypto exchanges, to be collected at source.
