How to file Income tax returns on earnings from crypto mining?

[Devss]

Hi

How do we file Income Tax Returns on income from mining crypto currency?  Also the which form should we fill ITR3 or ITR4.

Any guidance is appreciated. I paid the tax but I need to file the ITR.


Thanks

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[1715017049]

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[1715017049]

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[1715017049]

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[1715017049]

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[Cmoh]

Still, there is no specific regulation to file income tax return in India for the crypto asset because there is no fundamental definition is derived for this kind of investment. But. you can file the return as per the other asset income as usual.

[djbabu]

Hi

Not required because they don't treat as legal tender, so if you are not able to convert it to INR then you are not earning

Thanks

[ankurguta87]

Hi

How do we file Income Tax Returns on income from mining crypto currency? also the income is in less than 1 Cr. Also the which form should we fill ITR3 or ITR4.

Any guidance is appreciated. I paid the tax but I need to file the ITR.


Thanks

Till that date there is no guideline but as per my research, capital gain tax will be applicable.

Still there is more info I found while search about it:

Bitcoins created by mining are self-generated capital assets. Subsequent sale of such bitcoins would, in the ordinary course, give rise to capital gains. However, one may note that the cost of acquisition of a bitcoin cannot be determined as it is a self-generated asset. Further, it also not fall under the provisions of Section 55 of the Income-tax Act, 1961 which specifically defines the cost of acquisition of certain self-generated assets.

Therefore, the capital gains computation mechanism fails following the Supreme Court decision in the case of B.C.Srinivasa Shetty. Hence, no capital gains tax would arise on mining of bitcoins.

This position would hold till such time the government thinks of coming up with an amendment to Section 55 of the Act.

[Punit kumar]

There are no clear guidelines about taxes on crypto either from IT dept or RBI. If you are holding crypto then you do not need to pay any tax but if you have converted them to INR then pay the tax as per your salary slab. This is just my understanding.

[jaideep10002]

You calculate income based on your INR amount after selling the crypto - operating costs.

Then if your profit is in the taxable slab. You pay tax accordingly.

[Punit kumar]

You calculate income based on your INR amount after selling the crypto - operating costs.

Then if your profit is in the taxable slab. You pay tax accordingly.

Yeah, that's right but what if the person has incurred loss? Should he be given the chance to deduct that loss amount from his taxable income like its done in stock market in India?

[bitcoinisbest]

Hi

Not required because they don't treat as legal tender, so if you are not able to convert it to INR then you are not earning

Thanks

Just to let you know that if you are not going to declare any income earned form btc or other coins and if they know about it which they will obviously then you will be landing in trouble for sure. Till now notices are sent to those people who have made money and dint filed the tax for it.