Investing in Crypto? Know This First

Bitcoin's value has surged to ₹82,96,954, rising more than 42% since Donald Trump's election victory.

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Elon Musk's role in Trump's administration helped Dogecoin soar with a 122% return in just a few days.

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The question now arises: should you ditch traditional investments offering 7-8% returns and jump into digital currencies?

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While the promise of high returns is tempting, there’s an important factor to consider—taxation on crypto investments in India.

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The government imposes a flat 30% tax rate on profits from the sale or transfer of cryptocurrencies, regardless of holding period.

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This means if you make a ₹1 lakh profit from Bitcoin, you’ll owe ₹30,000 in taxes.

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Unlike other assets, no deductions for transaction costs or exemptions apply to cryptocurrency transactions.

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A 1% TDS is also levied on crypto transactions exceeding ₹10,000 within a financial year, paid by both buyer and seller.

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Losses from one cryptocurrency cannot be offset against profits from another, meaning you'll be taxed on the full profit.

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Crypto's extreme volatility, lack of payment utility in India, and complex tax implications make it important to weigh all risks before investing.

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