In India, cryptocurrencies are currently not recognized as legal tender, and there is no specific tax law for cryptocurrencies. However, the Indian government has taken a stance that cryptocurrencies are taxable under the Income Tax Act of 1961.
According to the Income Tax Act, any income earned from cryptocurrency transactions, such as trading, mining, or investing, is subject to tax. The tax rate will depend on the individual’s income tax slab, which ranges from 0% to 30%. If the individual is classified as a “trader” in cryptocurrencies, then the profits from trading may be considered as business income, which would be subject to tax under the normal business income tax rates.
Additionally, if an individual receives cryptocurrency as payment for goods or services, then the value of the cryptocurrency received will be treated as income, and the appropriate tax will be applicable.