Bitcoin rebounded after a sudden fall triggered apparently by a 'bitcoin-exchange' halting trade due to technical reasons, which led to panic selling over fears that the 'bitcoin bubble' was about to burst. A look at how the cryptocurrency market works
How is crypto currency taxed in India?
In India, the Central Board of Direct Taxes has no guidelines on income-tax for profits on the sale of cryptocurrency. But if bitcoins have been purchased as investment, any profit on sale can be booked as capital gains, experts say.
For instance: Somebody bought a bitcoin for Rs 40,000 four years ago in January 2013 (FY 2012-13) and sold it for Rs 69,500 in November 2016 (FY 2016-17), making Rs 29,500 profit
Value of sale 69,500
Less indexed cost of acquisition* 52,817
Long-term capital gains 16,683
@20% 3,337
*Cost of acquisition multiplied by (Cost Inflation Index of the year of sale/CII of the year of purchase)
Can you elaborate the calculation ? Where does the figure 52,817 come from ?
Also when is an individual supposed to pay the tax. On sell order on the exchange or moving the money back in bank account.
What about loss in crypto dealing.
How is the tax calculated if I earned Rs 4500 in a transaction where as lost 2800 in another. In this case my taxable income is 4500 or 1700 ?
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