{"id":55,"date":"2023-08-09T21:44:23","date_gmt":"2023-08-09T16:14:23","guid":{"rendered":"https:\/\/taxb.in\/?p=55"},"modified":"2023-08-09T21:44:23","modified_gmt":"2023-08-09T16:14:23","slug":"capital-gain-tax-for-crypto","status":"publish","type":"post","link":"https:\/\/raveladvisors.com\/services\/blog\/capital-gain-tax-for-crypto\/","title":{"rendered":"How Will the New Income Tax Circular Affect Your Virtual Digital Assets?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Income Tax Notification CG-DL-E-09082023-247974: What You Need to Know<\/h2>\n\n\n\n<p>The income tax CG-DL-E-09082023-247974 is a new circular issued by the Central Government on August 9, 2023. The circular provides guidance on the taxation of digital assets, such as crypto currencies and non-fungible tokens (NFTs).<\/p>\n\n\n\n<p>The circular clarifies that digital assets are considered &#8220;virtual digital assets&#8221; for the purposes of income tax law. This means that any income derived from the transfer of digital assets will be taxable as &#8220;capital gains&#8221;.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-opt-id=1983589192  fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/mlypi4vg6bf7.i.optimole.com\/w:1024\/h:576\/q:mauto\/f:best\/https:\/\/raveladvisors.com\/services\/wp-content\/uploads\/2023\/08\/new-crypto-taxation-august-2023-capital-gain.jpeg\" alt=\"crypto tax capital gain\" class=\"wp-image-56\" title=\"\"><\/figure>\n\n\n\n<p>The circular also sets out the rates of taxation for capital gains from digital assets. Short-term capital gains (i.e., gains arising from the transfer of digital assets held for less than 36 months) will be taxed at a flat rate of 30%. Long-term capital gains (i.e., gains arising from the transfer of digital assets held for more than 36 months) will be taxed at a rate of 20%, plus cess and surcharge.<\/p>\n\n\n\n<p>The circular also provides guidance on the <strong>taxation of gifts of digital assets<\/strong>. Gifts of digital assets will be taxed in the hands of the recipient, at the same rates as capital gains.<\/p>\n\n\n\n<p>The circular is a significant development in the taxation of digital assets in India. It provides much-needed clarity on the tax treatment of these assets and will help to ensure that taxpayers are compliant with the law.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Here are some key takeaways from the circular:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digital assets are considered &#8220;virtual digital assets&#8221; for the purposes of income tax law.<\/li>\n\n\n\n<li>Any income derived from the transfer of digital assets will be taxable as &#8220;capital gains&#8221;.<\/li>\n\n\n\n<li>Short-term capital gains (i.e., gains arising from the transfer of digital assets held for less than 36 months) will be taxed at a flat rate of 30%.<\/li>\n\n\n\n<li>Long-term capital gains (i.e., gains arising from the transfer of digital assets held for more than 36 months) will be taxed at a rate of 20%, plus cess and surcharge.<\/li>\n\n\n\n<li>Gifts of digital assets will be taxed in the hands of the recipient, at the same rates as capital gains.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Income Tax Notification CG-DL-E-09082023-247974: What You Need to Know The income tax CG-DL-E-09082023-247974 is a new circular issued by the Central Government on August 9, 2023. The circular provides guidance on the taxation of digital assets, such as crypto currencies&#8230;<\/p>\n","protected":false},"author":2,"featured_media":56,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-55","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/posts\/55","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/comments?post=55"}],"version-history":[{"count":0,"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/posts\/55\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/menu-items\/56"}],"wp:attachment":[{"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/media?parent=55"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/categories?post=55"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/raveladvisors.com\/services\/wp-json\/wp\/v2\/tags?post=55"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}