Budget 2022: #CryptoTax 

Everything you need to know about 🇮🇳 Crypto Tax for FY 22-23

🧵 Covers:
⚡️Salary
⚡️Consultancy
⚡️Airdrops
⚡️Mining
⚡️Yield farming, Staking, Lending, Interest
⚡️Trading/Investing 
⚡️Borrowing
⚡️NFT 
⚡️QnA

@simplykashif @CryptooAdy @NischalShetty 

Let's first recap the Tax sections:

Sec 115BBH: 30% Tax to be paid on
⭐ Profits made
⭐ on "Transfer"
⭐of Crypto/NFT

📒Profit = Sale price - Cost of Purchase

📒Transfer = Sale, Exchange or Surrender of Crypto/NFT

(2/17)

Section 194S: 

⭐Buyer to deduct 1% TDS 
⭐on amount of VDA purchased
⭐from "Resident" seller

📒 Resident = Stay in India for >181 days

📒Trading in Int'l exchange/DEX - No TDS  (P2P - TDS applicable)

📒Transfer within own wallets - No TDS

📒TDS from 01/07/2022

(3/17)

Let's now analyse each Transaction:

1. Salary received in Crypto:

There are 2 tax events:

a. Receipt of Salary: Market value (MV) of Crypto on date of receipt taxable as Salary - SLAB RATES

b. Sale of Crypto: Tax at 30% on Profit = Sale price -  MV
TDS at 1% by buyer

(4/17)

2. Consultancy charges received in Crypto:

There are 2 tax events:

a. Receipt of Crypto: MV of Crypto on date of receipt taxable as Business Income - SLAB RATES. 

Expense deduction - Allowed

b. Sale of Crypto: Tax at 30% on Profit = Sale price -  MV
TDS at 1% by buyer

(5/17)

3. Airdrop:

There are 2 tax events:

a. Receipt of Airdrop: Market value (MV) on date of receipt taxable as Other Income - SLAB RATES

b. Sale of Crypto: Tax at 30% on Profit = Sale price -  MV


*If no MV on Airdrop date. Then pay Tax on Sale date

(6/17)

3. Gifts:

There are 2 tax events:

a. Receipt of Crypto from: 
    Blood relatives: Exempted
    Others: Exempt up to Rs.50K in year (If crosses, full taxable at slab rates)

b. On Sale: 30% tax on Profit = Sale Price - Cost to previous owner/Amt taxed as Gift Income

(7/17)

4. Mining:

There are 2 tax events:

a. Receipt of reward: MV on date of receipt taxable as Business Income* - SLAB RATES

b. Sale of Crypto: 30% Tax on Profit = Sale price -  MV
TDS @ 1% by buyer

*My view: Sec 115BBH - Not applicable. Expense can be claimed as deduction

(8/17)

5. Yield Farming/Staking/Lending/Interest Income:

There are 2 tax event:

a. Reward claimed*: MV taxable as Other Income - SLAB RATES
Expense for claiming income - allowed 


b. Sale of Crypto: 30% Tax on Profit = Sale price -  MV

*Disclose Income "after claiming"

(9/17)

6. Trading/Investing

✅ Tax at flat 30% + Surcharge + 4% Cess 
⚠️ Tax "ONLY ON PROFITS"
✅ Deduction allowed only for "Purchase price"
⚠️ No deduction for Brokerage, Interest, Royalty etc.

🚨 Disclose in ITR as Capital Gains.

(9/16)

7. Borrowing:

Borrowing and repayment of Loan is NOT a Taxable event.

However, if Borrowed amount is used to trade and earn profit, Then tax payable on those profits as per Point 6 above.

⭐ If used smartly, You can HODL + cover small expenses using this technique :D

(10/16)

8. NFTs:

✅ Tax at flat 30% + Surcharge + 4% Cess 
✅ Deduction allowed only for "Purchase price"
⚠️ Tax "ONLY ON PROFITS"
⚠️ No deduction for Brokerage, Royalty etc

🔴 NFT Creators & flippers: making a separate thread. Stay tuned :D

🚨 Disclose in ITR as Capital Gain

(11/16)

9. QnA: Answering some popular Questions.

a. Earned a profit of $1000 by trading, but wallet got hacked Should I pay tax?
- Unfortunately Yes, You will have to pay tax on profits at 30%

b. If I use DEX, Govt. won't find out?
- They can and will find out easily

(12/16)

c. Should I pay GST on NFT flipped/ Created?
- Ideally yes, A detailed thread coming up on that shortly.

d. I Transferred my crypto from Exchange to Metamask. Should i pay tax/TDS?
- No TDS/Tax applicable on transfer within own Wallets.

(13/16)

e. If I made a Loss in Bitcoin of Rs.500 and made a gain of Rs.1000 in Bitcoin. On what amount should I pay tax?
- Tax will be payable on Rs.1000 at 30%. Since Govt. is treating Crypto same as gambling, no deduction will be allowed.

This is solely my view.
(14/16)

General Note: Ensure you convert the Crypto Income into INR immediately and withdraw the Tax portion. 

Just a risk mitigation measure :) 

(15/16)

I have tried to cover all aspects of Tax for FY 22-23

Will make thread on,
✅ Preparing for next year 
✅ Tax & GST for NFT Creators/Collectors.

This is not a substitute for legal advice. I am a CA Finalist and specializing in Taxation. If you found useful, Do share :)

(16/16)

You can read the unrolled version of this thread here: https://typefully.com/0xSonuJain/SxqbGCF

Pls spread the word ser's @pushpendrakum @acryptoverse @DheerajShah_ @SinoGlobalCap @hashed_official @mattysino @sentience420 @sandeepnailwal @crypto_hanuman @BuidlersTribe @PareenL :D

Taxation of Crypto for FY 22-23 in India

🚨 BREAKING: Income Tax Bill 2025: Crypto = DRUGS? 🤯 

I read the 4,500pg Report by "Select Committee on ITB 2025" so that you don't have to!

Crypto Tax Updates in this 🧵 
1️⃣ Proposal by Experts & BWA
2️⃣ Comments by Committee 
3️⃣ Ministry of Finance - Crypto and Drugs

1/6

1️⃣ Proposed changes in Crypto Tax by Experts and BWA:

😄 Loss off-set be allowed for trades on FIU registered exchanges.
💸 Loss off-set should be allowed within VDA.
💰 Deduction should be allowed for Brokerage and Interest on loan.

Your thoughts on these proposals⁉️

2/6

2️⃣ Comments by Select Committee: 

Expense Deduction: ❌ Not Allowed 

💡 Reason: This is a policy change and outside the scope of ITB 2025. 

🧑‍🏫 Meaning: NO CHANGE in deductions. Only Cost of acquisition is allowed as deduction ✅ 

3/6

3️⃣ Ministry of Finance: Crypto, Kya Crypto? Yeh toh Drugs hai.

Loss-off set: ❌ Not Allowed 

💡 Reason: Can you allow expense deduction for sale of drugs❓
🇮🇳 taxes Income. Taxation ≠ Legality.

🧑‍🏫 Meaning: High Crypto Tax + NO Investor protection from GoI 🇮🇳

4/6

🙋 Valid Question of Community: Why Is the GoI collecting revenue while calling the industry illegal⁉️

This contradiction hurts builders, investors, and platforms. You CAN'T have tax enforcement without acknowledging the legal status of the activity.

5/6

⚠️ If crypto is illegal, say it.

✅ If crypto is legal, treat it like any other asset class.

❌ But don't use tax law to sit on the fence.

A clean, progressive & globally aligned policy is long overdue 🇮🇳 OR 
maybe, we are only good at following orders🤔

Your thoughts 🙏

6/6

Crypto Tax Updates: 2025

🚨 Income Tax Dept. Chairman's Statement on CRYPTO!

India is contributing on the CARF - "Crypto Data sharing between countries" 

⚡Efforts to trace foreign crypto holdings.
⚡Tax dept using tech + data exchange.

🚨 Access to crypto wallets in INCOME TAX RAID cases only.

🚨 78% Tax on Crypto Traders? Here’s what You NEED to Know! 🧵

The TRUTH we will cover:
✅ Moneycontrol — Satoshi's - 78% Tax case
✅ What is unexplained money?
✅ Who is getting tax notices? Binance traders or ..? 😅 
✅ FTX traders? ... Guys 🤣 


1️⃣ Satoshi's 78% Tax: What went wrong? 

First, what is this case all about? 
✅ Satoshi sold crypto for INR.
✅ He received money in Bank.
✅ He did not know who the buyer is!

Now, what happened next?

Now, Satoshi received a Tax Notice**. He was asked by the Tax officer to explain where money came into his Bank.

💡 Fair question, right? Yes.
🟢 Simple to answer? Yes.

Then what went wrong? 🔥 
 
(**How did he get notice? I have explained below.) 🕵️ 

The possible issue with Satoshi's case is

⁉️ He did not explain the source of money with evidence. 
⁉️ He did not make the officer understand the trade.
⁉️ Or he was poorly represented.

If you failed in all the above points, then it is "Unexplained money."

Want to be SAFE? ↓

How to avoid 78% Tax?

✅ Explain clearly - when you get a notice! 
✅ Use all documents you have to prove the trade.
✅ Take help from exchanges to get the details.

🤔 Most Important - Have a Good CA! 🕴️ 

Now, on to the next one! When do you get a notice?

⚠️ Will you get a Tax notice? 

It depends. Currently the people on target are
1️⃣ Traders on Indian exchanges
2️⃣ Traders on Local Bitcoins
3️⃣ High Value - P2P merchants (>1-2Cr)

Well, Binance traders are not on target of IT Dept, yet. 😮‍💨  

🧠 So, are you curious why Satoshi got a notice for just Rs.1 Lac? 

Maybe because of,

1️⃣ High Trading volume on 🇮🇳 exchanges OR
2️⃣ High-volume P2P trading through banks. 

If you only did P2P of Rs.1 lakh, you will mostly NOT get IT notice!

Now, busting some misinformation 🕵️ 

❌ MC Claim: P2P traders on FTX getting notices? 🤣 
✅ Fact: FTX never had P2P trading. LOL!

❌ MC Claim: Trade records of FTX not available? 
✅ Fact: FTX trade reports are available. This is misinformation.

Continuing, now some major busting!


❌ CoinDCX claim: Binance P2P traders getting notices? 😓 
✅ Fact: Currently, notices are being sent to traders with 

A. high-value trading on 🇮🇳 CEX or 
B. full-time P2P trading with crores of turnover.

⚠️ There is NO notice till date issued ONLY to "Binance" P2P traders.

Are you in Trouble? How to avoid any Tax issues?

✅ Declare your Profits in ITR and pay the Tax.
✅ If you are a buyer, deduct TDS in P2P trade.
✅ If you get a notice, get the help of an Expert!

😃 If you are smart. You know what to do!

Well, that's all in Today's thread.

I hope you found it useful. I have received many DMs; please expect a response by tomorrow!

Until then, keep focusing on trading and Leave the taxes to me :D

You can read the unrolled version of this thread here: https://typefully.com/TheWeb3CA/L4fOJK1

Busting the Myth on Crypto Tax Notices

#Budget 2023 starts in 1 hour!

what changes for Crypto and Web3 Industry in Budget 2023?
⚡ Lower taxes?
⚡ TDS reduction?
⚡ Slab benefits?
⚡ Regulations on exchanges?

Let's discuss!
 (1/7)

First things first, Let us recap Budget 2022 😀

Budget 2022:
1️⃣  Aggressive tax on Indian crypto Investors.
    → Tax at flat 30% on transfers
   🔴 No set-off or carry forward of loss

2️⃣  TDS at 1% on transfer of crypto assets

(2/7)

⚠️ Impact of the Aggressive tax system:

➡️ Indian Investors shifted trading activities to foreign exchanges

➡️ Indian exchanges lost 95-97% of trading volume due to TDS

➡️ TDS form 26QE is still NOT available for filing on Income tax portal

(3/7)

So what changes can we see from Budget 2023?

🚨 Will the 30% Tax rate reduce?
➡️ Nope, no changes in Budget 2023

🚨 Will set-off and carry-forward of losses be allowed?
➡️ Nope, no changes in Budget 2023

(4/7)

🚨 Will 1% TDS reduce to a lower rate?
➡️ Nope, no changes in Budget 2023

🚨 Clarity on how to treat different crypto transactions?
➡️ There will be no clarifications or changes in any crypto tax provisions.

(5/7)

⚠️ Any new taxes on Crypto?
➡️ No, Ideally there won't be any new taxes.

However there is a possibility that GST Council may levy GST on cryptos in future (since gold also has 3% GST)

(6/7)

Ultimately, We will have further clarity on all the above questions only after the budget 2023!

I will be doing a deep dive into any changes in Budget 2023.. So stay tuned for it!

You can read the unrolled version of this thread here: https://typefully.com/TheWeb3CA/CL4fWwk
(7/7)



Budget 2023: Crypto Industry Expectations

#CryptoTax 

Everything you need to know about 🇮🇳 Crypto Tax for FY 21-22

🧵 Covers:
⚡️Salary
⚡️Consultancy
⚡️Airdrops
⚡️Mining
⚡️Yield farming, Staking, Lending, Interest
⚡️Trading/Investing
⚡️Borrowing
⚡️NFT

@simplykashif @CryptooAdy @NischalShetty @cz_binance 

Let us re-cap few concepts:

Capital Gains (CG)
⭐ Crypto profits may be taxed as CG
⭐ CG are of 2 types: Short term (STCG) & Long term (LTCG)

→ Sold crypto within 3 years of buying = STCG, Tax at Slab rate
→ Sold crypto after 3 years of buying = LTCG, Tax at 20%

(2/15)

🤔 How to calculate STCG?

⚒️ STCG = Sale Value - Buy Value - Expenses

💰 Sale Value = Sale price x Quantity
💸 Buy Value = Buy price x Quantity
Expenses = Brokerage, Network fees, Gas fees, Royalty etc.

(3/15) 

🤔 How to calculate LTCG?

⚒️ LTCG = Sale Value - *Indexed* Buy Value (IBV) - Expenses

💰Sale Value = Sale price✖️Quantity

💸IBV = Indexed Buy price*✖️Quantity 
(*explained next)

Expenses = Brokerage, Network fees, Gas fees, Royalty etc.

(4/15)

🤔 What is Indexed Buy Price?

👉 Indexation means adjusting the cost to match inflation
👉 In Long term assets: Cost is adjusted for Inflation between Buy year and Sale year

⚒️ Formula = Buy Price✖️Inflation Index in Sale year ➗ Inflation Index in Buy year

(5/15)

Let's analyse each transaction:



1. Salary received in Crypto



Tax events:

👉Receipt of Salary: Market value (MV) of Crypto on date of receipt taxable as Salary at *Slab rates*



👉Sale of Crypto: Tax as per STCG/LTCG as applicable on gains

(6/15)

2. Consultancy charges received in Crypto



Tax events:


👉Receipt of Crypto: MV of Crypto on date of receipt taxable as Business Income at *Slab rates*
 


✅Expense - allowed if incurred in INR



👉Sale of Crypto: Tax as per STCG/LTCG as applicable on gains

(7/15)

3. Airdrops:



Tax events:



👉Receipt of Airdrop: MV on date of receipt taxable as Other Income at *Slab rates*

✅Expenses like gas fees can be deducted.



👉Sale of Crypto: Tax as per STCG/LTCG as applicable on gains

(8/15)

4. Mining Income:
 

Tax events:


👉Receipt of reward: MV on date of receipt taxable as Business Income at *Slab rates* 

✅Expenses like gas fees, mining equipment, electricity can be deducted.


👉Sale of Crypto: Tax as per STCG/LTCG as applicable on gains




(9/15)

5. Yield Farming/Staking/Lending/Interest Income:



Tax event:



👉Rewards claimed*: MV on date of claiming taxable as Other Income at *Slab rates*


✅Expenses like gas fees can be deducted.



👉Sale of Crypto: Tax as per STCG/LTCG as applicable on gains

(10/15)

6. Trading/Investing:
 

✅ Taxes at Slab rate for STCG & 20% for LTCG


✅ Loss Set-off allowed 
✅ Deduction for Brokerage, Interest, gas fees etc.


🚨 Disclose in ITR as Capital Gains

(11/15)

7. Borrowing:



⭐ Borrowing and repayment of Loan is NOT a Taxable event.



⚠️ However, if Borrowed amount is used to trade and earn profit, Then tax payable on those profits as per Point 6 above.

(12/15)



8. NFTs trading:



✅ Tax at Slab rate for STCG & 20% for LTCG 
✅ Loss Set-off allowed 
✅ Deduction for Brokerage, Interest, gas fees etc.





🚨 Disclose in ITR as Capital Gain

(13/15)

Important points: Capital gains for FY 21-22

👉Can we set-off loss: ✅
👉Can we carry forward loss: ✅
👉Can we set-off crypto loss of 21-22 with "Crypto gains of 22-23? ❌
👉Can we set-off crypto loss of 21-22 with Capital gains "other than crypto" of 22-23? Yes✅

(14/15)

Tried to cover all aspects of Crypto Tax for FY 21-22😄

⚠️This thread is based on my expertise in Taxation & not legal advice

🚨ITR filing last date is 31 July. If you need help in Tax calculation & IT return, please fill this form or DM: https://forms.gle/q24oGXqeD8x52xsn6




(15/15)

You can read the unrolled version of this thread here: https://typefully.com/0xSonuJain/1MtCYZ6

Crypto tax for FY 21-22

#taxsaving How to save Rs.45,000 in TAXES?

👉 Did you purchase any Electric vehicle on loan?
✅ @OlaElectric S1 Pro
✅ @atherenergy 450X
✅ @TataMotors Nexor or Tigor EV
✅ or any electric vehicle (2, 3 or 4 wheeler)

 If yes, Then read 🧵 to save upto 45K in taxes.  

(1/7)

Section 80EEB provides deduction of upto Rs. 1,50,000/- on Interest paid on loan for purchase of Electric vehicle (EV).

Let's understand who, when, and how can claim this deduction with examples.

(2/7)  #Olaelectric #bounceinfinity #EV #FutureOfMobility

Who can claim deduction?

✅Individual 
✅Purchased electric vehicle (bike, car, auto etc)
✅on a Loan from Bank or NBFC

🔴 HUFs/ Firms/ Companies can't claim deduction :(

(3/7)

When can you claim deduction?

✅Loan is sanction between 1-4-2020 to 31-3-2023
✅Interest is payable/paid*

🔴EV should NOT be a Hybrid. It should be PURE EV.

* Note: Deduction for Interest can be claimed even if Interest is due but not paid.

(4/7)

How can you claim?

✅Obtain Interest certificate from bank / NBFC
✅ Provide it to your CA while filing your ITR.

Note: Sole proprietor using EV for business and claiming deduction under 80EEB. Then cannot claim depreciation in PGBP.

(5/7)

Example: 

Purchased @TataMotors Nexon for Rs. 15L financed through loan on 1st April, 2021 at 12% p.a. for 3 years

FY 21-22 Interest: Rs.1.22L (ref. image)

80EEB Deduction : Rs.1.22L (Lower of Rs.1.22L or 1.5L)
Tax savings* : Rs.36.6K

*Assuming 30% tax bracket

(6/7)

Summary:

⏺️ Purchase EV (2,3,4 wheeler) on Loan
⏺️ Loan sanction b/w 1/4/20 - 31/3/23
⏺️ Interest deduction up to Rs.1.5L 

I hope you found this thread useful :)

Retweet and Share it with your friends who purchased a EV and didn't treat you 😆 🤣 
#ElectricVehicles #EVs


You can read the unrolled version of this thread here: https://typefully.com/0xSonuJain/W7n8sWE

Tax savings on Purchase of EVs in India

Clearing some confusion on #reducecryptotax Petition: https://chng.it/G6SFKwp9b6

What are we trying to convey?
What is our request to Government?

@CryptooAdy @simplykashif @NischalShetty @sathvikv @smtgpt @acryptoverse @pushpendrakum @sumitkapoor16 @gauravdahake

Pls share

(1/5) 

Our requests are outlined in the above petition. I would like to clarify a few things:

1. Tracking of Crypto transactions:
If Govt's Intention is to track crypto transactions. 

Then we are requesting Govt to Implement SFT (Similar to Stock exchanges) rather than TDS.

(2/5) 

However, If Govt wants to track Transactions and also collect advance revenue in form of TDS.

Then, We request the TDS rate may be 0.01% of Sale value, which would be a major relief for Tax payers & ensure Volumes grow on Indian Exchanges yielding addnl. GST to Govt.

(3/5)

2. Taxation at 30%:

We are requesting Govt. to give following benefits to crypto community inline with those available to our Stock traders:

✅ Slab benefit
✅ Deduction for direct expenses (brokerage, Interest, Royalty etc)
✅ Carry forward of losses

(4/5)

We are thankful to Government to give us an opportunity to voice our concerns.

I hope these points clarify our specific reliefs requested

Together we can make India global hub for crypto and which helps our nation in, 
✅ FDI
✅ Employment
✅ GDP growth etc

Jai Hind 🇮🇳 

(5/5)

Request to Indian Govt. on Crypto Tax - Petition

Proposal to 🇮🇳 Crypto community:

The Budget 2022 tax proposals will have significant impact on the 🇮🇳 Crypto Industry and all the stakeholders. 

We have been actively urging Govt as community & Individually, but we don't have a formal structure.

(1/n) 

https://twitter.com/0xSonuJain/status/1489187551269330945?s=20&t=v7HsUaKxdEJWLSJrklOJWw

Currently, There is just one formal body for Crypto in India viz. BACC. This body consists of crypto exchanges operating in India.

However, we have no formal body, voicing concerns or lobbying with govt to put forth the views of the Crypto community.

(2/n)

In such a case, it becomes difficult for Govt. to have a dialogue with the Community since there are no representatives of Investors.

The proposal is as below:

(3/n)

1️⃣ Community needs to set-up a Investor body (either as a trust/Society/Company)

2️⃣ The Objective of Investor body is to put forth views of community on regulations, help govt in decision making, Investor awareness activities.

(4/n)

3️⃣ Investor body will collect inputs from all stakeholders and present it in a formal structure to the govt.

4️⃣ Members of the body will be elected as representative by the crypto community through a transparent process.

(5/n)

5️⃣ The Ultimate goal is to have a body representing the general public and provide a platform for active dialogue with Govt. 

This will not only help in positive regulations but on a larger scale will enable development of India as a crypto hub.

(6/n)

This proposal is a summary of how we as community can move ahead. I request the community to put forward your views & ideas on how to take this forward.

It is for "US" to help govt. understand potential & tech of Crypto,web3 and how it is Not gambling.

(7/n)

We all have been putting a lot of effort to ensure our voices reach the doors of Govt. Let's ensure we are HEARD!
 
Pls share ser's @CryptooAdy @CryptooIndia @simplykashif @NischalShetty @pushpendrakum @crypto_hanuman @acryptoverse @sumitkapoor16 @smtgpt @PareenL @sathvikv

Formal Structure for Indian Crypto Investors

I found a video on Youtube with thumbnail: "How to pay 0% tax on Crypto in India"

I saw it out of curiosity 😝thinking maybe some strategy..

Youtuber: Use DEX/ International exchange, govt can't track it and also no tax up to 5L crypto income.

Me: 😰🤯 

(1/2) #reducecryptotax

My view: Don't think that Govt can't track. Be honest &amp; pay your taxes

"NO TAX UPTO 5L" is wrong and terrible advice. Proposed Tax is flat 30%

Pls "Read &amp; Sign" this petition to request govt. to reduce tax for small investors: http://chng.it/8tqFMdRRNS

@CryptooAdy @simplykashif