How does the Indian tax system classify and tax cryptocurrency transactions in 2022?

1 answers

• May 02, 2022 · 3 years ago
  As an expert in the field, I can tell you that the Indian tax system classifies cryptocurrency transactions based on the holding period of the cryptocurrency. If you hold the cryptocurrency for less than 36 months, it is considered a short-term capital asset and taxed at the applicable slab rate. If you hold it for more than 36 months, it is considered a long-term capital asset and taxed at a flat rate of 20%. It's crucial to keep proper records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with the Indian tax laws. If you have any further questions, feel free to ask!
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