How can I calculate the capital gains tax on my cryptocurrency investments in India?

1 answers

• Holloway FengerSep 21, 2023 · 2 years ago
  Calculating the capital gains tax on your cryptocurrency investments in India can be a complex process, but it's important to ensure compliance with the tax laws. The first step is to gather all the necessary information, including the purchase price, sale price, and any transaction fees or expenses. Next, you need to determine the holding period of your investments. If you held the cryptocurrency for less than 36 months, it is considered short-term, and if you held it for more than 36 months, it is considered long-term. For short-term gains, you will be taxed at your applicable income tax rate, which can range from 5% to 30%. For long-term gains, you will be taxed at a flat rate of 20%. To calculate the capital gains, subtract the purchase price from the sale price. If you have made multiple transactions, calculate the gains for each transaction separately and then add them up. It's always a good idea to consult with a tax professional to ensure accuracy and compliance with the tax laws.
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