{"id":4749,"date":"2022-08-02T09:50:53","date_gmt":"2022-08-02T09:50:53","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4749"},"modified":"2026-02-18T18:51:12","modified_gmt":"2026-02-18T18:51:12","slug":"crypto-currency-as-per-income-tax-provisions","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/","title":{"rendered":"Crypto currency As per Income Tax Provisions U\/S 115BBH"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4751\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Cryptocurrencies-taxation-in-india..jpg\" alt=\"cryptocurrency taxation in india\" width=\"937\" height=\"423\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Cryptocurrencies-taxation-in-india..jpg 600w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Cryptocurrencies-taxation-in-india.-300x136.jpg 300w\" sizes=\"(max-width: 937px) 100vw, 937px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e022e74fb82\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e022e74fb82\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#What_is_the_meaning_of_Crypto_currency_according_to_income_tax_provisions\" title=\"What is the meaning of Crypto currency according to income tax provisions?\">What is the meaning of Crypto currency according to income tax provisions?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Crypto_currency_and_Income_Tax\" title=\"Crypto currency and Income Tax\">Crypto currency and Income Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Cryptocurrency%E2%80%94Meaning_as_per_Income_Tax_provisions\" title=\"Cryptocurrency\u2014Meaning as per Income Tax provisions\">Cryptocurrency\u2014Meaning as per Income Tax provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Classification_of_Virtual_Digital_Asset\" title=\"Classification of Virtual Digital Asset\">Classification of Virtual Digital Asset<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Tax_on_income_from_crypto_currencies_Section_115BBH\" title=\"Tax on income from crypto currencies [Section 115BBH]\">Tax on income from crypto currencies [Section 115BBH]<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Computation_of_capital_gains_on_transfer_of_cryptocurrencies\" title=\"Computation of capital gains on transfer of cryptocurrencies\">Computation of capital gains on transfer of cryptocurrencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Indexation_of_cost_of_acquisition\" title=\"Indexation of cost of acquisition\">Indexation of cost of acquisition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Applicability_of_TDS_provisions_Section_194S\" title=\"Applicability of TDS provisions [Section 194S]\">Applicability of TDS provisions [Section 194S]<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Rate_of_TDS%E2%80%941_of_consideration\" title=\"Rate of TDS\u20141% of consideration\">Rate of TDS\u20141% of consideration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/crypto-currency-as-per-income-tax-provisions\/#Exemption_from_TDS\" title=\"Exemption from TDS\u00a0\">Exemption from TDS\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_meaning_of_Crypto_currency_according_to_income_tax_provisions\"><\/span><span style=\"color: #000080;\"><u>What is the meaning of Crypto currency according to income tax provisions?<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_currency_and_Income_Tax\"><\/span><span style=\"color: #000080;\"><u>Crypto currency and Income Tax<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>In the introduction of Budget 2022, the government has announced taxation norms on the same. Key pointers regarding income tax implications on crypto currencies in India are as follows \u2013<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cryptocurrency%E2%80%94Meaning_as_per_Income_Tax_provisions\"><\/span><span style=\"color: #000080;\"><u>Cryptocurrency\u2014Meaning as per Income Tax provisions<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A form of virtual digital asset<\/li>\n<li>Not being an Indian currency or foreign currency as per the provisions of Foreign Exchange Management Act, 1999<\/li>\n<li>Functions as a store of value, unit of account<\/li>\n<li>Can be transferred, stored or traded electronically<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Classification_of_Virtual_Digital_Asset\"><\/span><span style=\"color: #000080;\"><u>Classification of Virtual Digital Asset<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>As per the Finance Bill, 2022, the crypto currencies are classified as a capital asset for the purpose of taxation, and hence, income under the head &#8220;capital gain&#8221; will arise on transaction of the same.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tax_on_income_from_crypto_currencies_Section_115BBH\"><\/span><span style=\"color: #000080;\"><u>Tax on income from crypto currencies [Section 115BBH]<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4767\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/TAXABILITY-OF-VIRTUAL-DIGITAL-ASSETS-CRYPTOCURRENCY-SECTION-115BBH.jpg\" alt=\"TAXABILITY OF VIRTUAL DIGITAL ASSETS\/ CRYPTOCURRENCY U\/S 115 BBH\" width=\"960\" height=\"720\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/TAXABILITY-OF-VIRTUAL-DIGITAL-ASSETS-CRYPTOCURRENCY-SECTION-115BBH.jpg 960w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/TAXABILITY-OF-VIRTUAL-DIGITAL-ASSETS-CRYPTOCURRENCY-SECTION-115BBH-300x225.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/TAXABILITY-OF-VIRTUAL-DIGITAL-ASSETS-CRYPTOCURRENCY-SECTION-115BBH-768x576.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/TAXABILITY-OF-VIRTUAL-DIGITAL-ASSETS-CRYPTOCURRENCY-SECTION-115BBH-800x600.jpg 800w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/p>\n<ul>\n<li>Income from the transfer of cryptocurrencies will be taxed at <strong>the rate of 30%. Deduction\u2014No<\/strong> deduction of any expenditure except for cost of acquisition will be allowed Set off\/Carry forward of losses\u2014No set off of losses against any income is allowed, and the as carry forward of losses in this respect is also not allowed<\/li>\n<\/ul>\n<div class=\"mceTemp\"><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Computation_of_capital_gains_on_transfer_of_cryptocurrencies\"><\/span><span style=\"color: #000080;\"><u>Computation of capital gains on transfer of cryptocurrencies<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following should be <strong>ignored <\/strong>while computing <strong>capital gains on the transfer of cryptocurrencies.<\/strong><\/p>\n<ul>\n<li>Cost of improvement relating to the asset<\/li>\n<li>Selling expenses e. the expenditure incurred in connection with the transfer of virtual digital asset<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Indexation_of_cost_of_acquisition\"><\/span><span style=\"color: #000080;\"><strong>Indexation of cost of acquisition<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Any exemption under section 54F Further, no deduction under Chapter VI- A shall be allowed. However, relief under section 87A, i.e., rebate, can be<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Applicability_of_TDS_provisions_Section_194S\"><\/span><span style=\"color: #000080;\"><u>Applicability of TDS provisions [Section 194S]<\/u><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A new section 194S is proposed to be inserted in The Income Tax Act, 1961 e.f.<strong>07.2022 <\/strong>regarding TDS.<\/li>\n<li>Deductor \u2013 Any person responsible for paying any sum by way of consideration for the transfer of crypto currency.<\/li>\n<li>Deductee \u2013 Tax is required to be deducted if amount is payable to <strong>a resident person<\/strong><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4752\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/taxation-of-crpto-.png\" alt=\"taxation of bitcoin\" width=\"829\" height=\"681\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/taxation-of-crpto-.png 600w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/taxation-of-crpto--300x247.png 300w\" sizes=\"(max-width: 829px) 100vw, 829px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rate_of_TDS%E2%80%941_of_consideration\"><\/span><span style=\"color: #000080;\">Rate of TDS\u20141% of consideration<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>When to deduct \u2013 At the time of payment or at the time of credit of such sum to the account of resident, whichever is earlier<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Exemption_from_TDS\"><\/span><span style=\"color: #000080;\"><strong>Exemption from TDS\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If consideration is payable by any person (other than a specified person) and its aggregate value does not exceed 10,000 during the financial year<\/li>\n<li>If consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7775\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Crpto.jpg\" alt=\"Crypto Company TDS\" width=\"1080\" height=\"1028\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Crpto.jpg 1080w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Crpto-300x286.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Crpto-1024x975.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Crpto-768x731.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Crpto-800x761.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p>Meaning of \u201cspecified person\u201d\u2014An individual or a HUF whose total sales or gross receipts do not exceed Rs. 1 crore in the case of business or Rs. 50 lakh in the case of a profession during the financial year immediately preceding the financial year in which such virtual digital asset is transferred. An individual or a HUF who does not have any income under the head profits and gains of business or profession.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning of Crypto currency according to income tax provisions? Crypto currency and Income Tax In the introduction of Budget 2022, the government has announced taxation norms on the same. Key pointers regarding income tax implications on crypto currencies in India are as follows \u2013 Cryptocurrency\u2014Meaning as per Income Tax provisions A form &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[792],"tags":[929],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4749"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4749"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4749\/revisions"}],"predecessor-version":[{"id":10177,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4749\/revisions\/10177"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}