Tax Implications on Cryptocurrencies
Every income is taxable unless otherwise stated. This implies that even cryptocurrency would be taxable. The tax implications depend on whether a person is investing in it as an asset or mining it. If held as an asset it is divided between business and personal needs. With business, the regular corporate tax applies and for personal depending upon duration (more than 3 years or less than) it will be treated as long-term capital gain or short-term capital gain and relevant slabs will apply. Section 55 of the Income Tax Act 1961 deals with mining however it hasn’t been recognized till now. This section imposes tax through disclosures by showing mining as asset in the schedule.