Cryptocurrency trading: No escaping taxation on income earned
A number of investors had anticipated this move had exited their positions right after the RBI directive. These individuals will come under the tax bracket and will have to figure out the slab rate and do the needful. However, there are individuals who believe in the crypto ecosystem and are still holding on to their positions. In the absence of a clear categorisation or recognition of the crypto assets by the government, it will be difficult for tax authorities to ascertain a benchmark value for crypto assets.
In April, the Reserve Bank of India had mandated that all financial institutions under its control must stop servicing cryptocurrency exchanges and other crypto-related businesses within three months. Image source: Reuters