What is India’s levy crypto tax, and how does it apply across various types of transactions, such as trading, selling or spending your crypto?
For the financial year 2024-2025, Indian tax law treats cryptocurrencies as virtual digital assets (VDAs) under the Income Tax Act, 1961. Section 2(47A) spells out what that means: Any code, number, token or piece of information created through cryptography counts as a VDA. The only exception is money itself — Indian rupees or any other country’s fiat currency.
VDAs include cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as non-fungible tokens (NFTs) and similar digital tokens. While it is legal to buy, sell and hold VDAs, they are not recognized as valid payment methods.
Go to Source to See Full Article
Author: Dilip Kumar Patairya
