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Bitcoin expert india7/29/2023 ![]() ![]() Further, crypto gift received on occasion of marriage or inheritance or in contemplation of death is not taxable. Tax on transfer of crypto gift for receiverĬrypto gift is taxable for the receiver if the monetary value exceeds INR 50,000 and is received from a non-relative. Clubbing of Income – If the receiver of the gifted crypto is a spouse or minor child, any income that arises directly or indirectly from such asset is clubbed with the income of the giver of the crypto gift.Ĭheck the tax provisions for the recipient of crypto gift on receiving the gift and on sale of such gift.The sale of crypto gifted to the receiver is not taxable in the hands of the sender of the gift.Thus, the gift of cryptocurrency, NFT, and other VDA is not taxable in the hands of the sender. However, the definition of ‘transfer’ as per Section 47 specifically excludes gifts. The transfer of a Capital Asset is taxable as Capital Gains. Tax on transfer of crypto gift for giverĪs per Section 2(14) of the Income Tax Act, a virtual digital asset is a Capital Asset. Tax on giving a Crypto giftĬheck the tax provisions for the giver of crypto gift on giving the gift and on sale of such gift by the receiver. Received on occassion of marriage, via inheritance or will or in contemplation of deathĭefinition of relative for tax on gifting crypto – spouse, children, parents of individual or spouse, brother/sister of individual or spouse, brother/sister of parents of individual or spouse. Gift of VDA with value exceeding INR 50,000 received from non-relative VDA Gift with value exceeding INR 50,000 received from relative It is taxable in hands of the receiver applicable from FY 2022-23: Type Below is the tax treatment on the gifting of crypto, NFT, and other VDAs. VDA includes cryptocurrency, NFT, and any other notified digital asset. Under Budget 2022, the finance minister amended Section 56 for taxation of gifts to include ‘Virtual Digital Asset’ in the definition of property i.e. Section 56 of the Income Tax Act levies provision for taxation of gifts of immovable property, cash, and specified movable assets such as shares, jewellery, etc. a virtual currency token or a denomination of a cryptocurrency. ![]() A Crypto Token – A crypto trader can gift a crypto token i.e.a piece of paper with a single private key and bitcoin address. Crypto Paper Wallet – A crypto trader can also gift a crypto paper wallet i.e.Crypto Gift Cards – Crypto traders can buy gift cards from the cryptocurrency exchange for the purpose of gifting them to friends and relatives.Forms of Gifting CryptoĪ crypto trader or investor can gift cryptocurrency through the cryptocurrency exchange using gift cards, crypto paper wallet, crypto token, etc. As per the Income Tax Act, gift of cryptocurrency, NFTs, etc shall be taxable in the hands of the recipient. Further, they also introduced provisions for tax on gifting crypto, NFTs, etc. Under Budget 2022, the finance minister announced the provisions for taxation on cryptocurrency, NFT (non-Fungible Token), and other VDA (Virtual Digital Asset). In India, cryptocurrency is defined as a Virtual Digital Asset i.e. ![]()
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