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Jul 23, 2021
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Trading Bitcoin, Dogecoin, ETH or Matic? Check Income Tax, ITR Filing rules to apply on your income
Income tax payment and ITR filing rules for earnings from cryptocurrency trading and investment 2021: Indians have invested billions of dollars in cryptocurrencies like Bitcoin, Dogecoin, Ethereum, Binance, Ripple, Matic, and other over popular coins. The trading volume of cryptocurrencies has increased multifold since the nationwide lockdown of last year.
According to a recent Bloomberg report, Indian investment in cryptocurrencies grew from $923 million in April 2020 to nearly $ 6.6 billion in May 2021. The crypto investment by Indians has grown despite no clear regulation on this from the RBI or the Government.
The RBI had tried to impose a kind of ban in 2018 by restricting banking facilities to crypto exchanges, which was later ruled out by the Supreme Court. Since then, the Indian engagement in crypto trading and investment has grown manifold, particularly after Covid-induced lockdowns confined salaried youths to their homes, leaving them with ample time to explore new ways of making money fast.
As the tax filing season for AY 2021-22 starts, many crypto investors in the country may be worried about the tax implications of their earnings from crypto-currency trading and investments in the previous financial year. Here’s an explainer for them
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