Gifting cryptocurrency on Diwali? This is how much tax you’ll pay
<img src="” title=”Gifting cryptocurrency on Diwali? This is how much tax you’ll pay” />
Diwali is just around the corner and celebrations are underway. It is also the season of gifts. While there are options galore on the market, what if you are thinking of giving cryptocurrency as Diwali gifts this time?
Top digital coins such as Bitcoin are all the rage despite their volatile nature. Even the recent collapse in the crypto market couldn’t deter enthusiasts from taking the plunge. Cryptocurrencies are a good investment for many and they can easily be seen as an alternative to cash, letting you buy goods and services online. Gifting cryptocurrencies, thus, makes sense for many, and if you are one of them and reside in India, there are certain rules that you need to know.
Both as a sender and a recipient of the gift, you need to factor in the taxability of the cryptocurrency. While the Reserve Bank of India has time and again shown its disapproval of a crypto-powered market, the high volume of cryptocurrency trading has led the Indian government to consider digital coins. But not without rules. The rule includes a certain tax that the government charges on each transfer of cryptocurrency.
According to the guidelines laid out by the Income Tax Department, any sum of money received attracts tax over it. Essentially, gifting money over a certain limit will be taxed. The guidelines also mention that specified movable properties and immovable properties will also be taxed according to the rules. Since cryptocurrency is considered a moveable asset, the government applies the same rule to it. The rule states that any property over Rs 50,000 will be considered for taxation.
Simply put, a cryptocurrency gift that is worth either Rs 50,000 or less will be exempt from taxation, while anything in excess of that limit will be taxable. This is not, however, true for gift vouchers given to employers. If the value of the gift voucher or cash is less than Rs 5,000, it is not taxed, but otherwise, the government levies a tax.
The post Gifting cryptocurrency on Diwali? This is how much tax you’ll pay appeared first on BGR India.
<img src="" title="Gifting cryptocurrency on Diwali? This is how much tax you’ll pay" />
Diwali is just around the corner and celebrations are underway. It is also the season of gifts. While there are options galore on the market, what if you are thinking of giving cryptocurrency as Diwali gifts this time?
Top digital coins such as Bitcoin are all the rage despite their volatile nature. Even the recent collapse in the crypto market couldn’t deter enthusiasts from taking the plunge. Cryptocurrencies are a good investment for many and they can easily be seen as an alternative to cash, letting you buy goods and services online. Gifting cryptocurrencies, thus, makes sense for many, and if you are one of them and reside in India, there are certain rules that you need to know.
Both as a sender and a recipient of the gift, you need to factor in the taxability of the cryptocurrency. While the Reserve Bank of India has time and again shown its disapproval of a crypto-powered market, the high volume of cryptocurrency trading has led the Indian government to consider digital coins. But not without rules. The rule includes a certain tax that the government charges on each transfer of cryptocurrency.
According to the guidelines laid out by the Income Tax Department, any sum of money received attracts tax over it. Essentially, gifting money over a certain limit will be taxed. The guidelines also mention that specified movable properties and immovable properties will also be taxed according to the rules. Since cryptocurrency is considered a moveable asset, the government applies the same rule to it. The rule states that any property over Rs 50,000 will be considered for taxation.
Simply put, a cryptocurrency gift that is worth either Rs 50,000 or less will be exempt from taxation, while anything in excess of that limit will be taxable. This is not, however, true for gift vouchers given to employers. If the value of the gift voucher or cash is less than Rs 5,000, it is not taxed, but otherwise, the government levies a tax.
The post Gifting cryptocurrency on Diwali? This is how much tax you’ll pay appeared first on BGR India.
<img src="” title=”Gifting cryptocurrency on Diwali? This is how much tax you’ll pay” />
Diwali is just around the corner and celebrations are underway. It is also the season of gifts. While there are options galore on the market, what if you are thinking of giving cryptocurrency as Diwali gifts this time?
Top digital coins such as Bitcoin are all the rage despite their volatile nature. Even the recent collapse in the crypto market couldn’t deter enthusiasts from taking the plunge. Cryptocurrencies are a good investment for many and they can easily be seen as an alternative to cash, letting you buy goods and services online. Gifting cryptocurrencies, thus, makes sense for many, and if you are one of them and reside in India, there are certain rules that you need to know.
Both as a sender and a recipient of the gift, you need to factor in the taxability of the cryptocurrency. While the Reserve Bank of India has time and again shown its disapproval of a crypto-powered market, the high volume of cryptocurrency trading has led the Indian government to consider digital coins. But not without rules. The rule includes a certain tax that the government charges on each transfer of cryptocurrency.
According to the guidelines laid out by the Income Tax Department, any sum of money received attracts tax over it. Essentially, gifting money over a certain limit will be taxed. The guidelines also mention that specified movable properties and immovable properties will also be taxed according to the rules. Since cryptocurrency is considered a moveable asset, the government applies the same rule to it. The rule states that any property over Rs 50,000 will be considered for taxation.
Simply put, a cryptocurrency gift that is worth either Rs 50,000 or less will be exempt from taxation, while anything in excess of that limit will be taxable. This is not, however, true for gift vouchers given to employers. If the value of the gift voucher or cash is less than Rs 5,000, it is not taxed, but otherwise, the government levies a tax.
The post Gifting cryptocurrency on Diwali? This is how much tax you’ll pay appeared first on BGR India.
