Finance Act 2022 has brought the law of taxation of cryptos from 1st April 2022. Law is new, and that is the reason for this book. You will know about various taxable events in cryptocurrency transactions when you finish the book. Book will provide you with legal thoughts on multiple issues like how Swapping and Mining cryptos affect your tax liability and whether gifting of cryptos is taxable. You will also understand how and why trading and keeping your cryptos in foreign-based crypto exchanges will bring additional liability and adverse impact on the law.
Topics Covered in Book on Taxation of Cryptos in India
1. Six taxable events in cryptos!
It is not just purchases and sales that give rise to taxable income. The chapter explains the how various types of events happening in cryptos,
2. What types of gains can you have on crypto transactions?
This chapter explains the nature of gains under newly enacted law. The Finance Act 2022 has twisted the nature of gains and restricted taxation purposes. Yet, there are certain types of taxable events, that
3. New law for taxing crypto’s gains
Finance Act 2022 has brought in the definition of Virtual Digital Asset, Section 115BBH to tax any transfer @30%, and also section 194S for withholding tax on payments related to cryptos
4. How to compute tax and taxable gains on transfer of cryptos.
There are specific ways to compute the gains due to various blockchain events .
5. What is the swap of cryptos, and how do taxable gains arise out of it?
Swapping of cryptocurrencies is common in Blockchain. So how does that makes you liable for tax under newly enacted law?
6. Law of taxing gift of cryptos!
Yes, the gift of cryptos may be tax-free in hands of the recipient, but you need to understand how and when.
7. Why staking of cryptos is not a chargeable tax under the new law?
How staking of coins that is so important for the continuity of a blockchain network is taxed under the Income Tax Act.
8. Why expense for earning Mining of cryptos is claimable?
Crypto mining does involve huge costs of machinery, electricity, and holding certain coins. Are those allowable or disallowable. Read it to get surprised!
9. What is the TDS rule on crypto transactions?
TDS rule is tedious. So, how does the newly enacted law for TDS on payments for cryptos affect you? Explained in simple words
10. How is NFT sale taxed under the new law?
Well, the NFT craze will have a bump due to taxation law. FA 2022 has covered the Non Fungible Tokens as well.
11. Who must file a tax return compulsorily just for holding cryptos?
You will be astonished to know that there is a certain class of owners of cryptos who are obliged to file a tax return without even earning a penny!
12. Black Money Act & Cryptos
As the name suggests, the Black money Law will actually bring in dark clouds over some crypto owners. read to know who they are and what may happen to them
Ultimate guide on Taxation of Cryptos in India is the first-ever book that has touched on new issues that even the new law is not covering