In this presentation, I have clearly explained how you can calculate your crypto taxes in India. I have also presented necessary tools that can come in really handy when you calculate your crypto tax.

1. YouTube/Facebook/Twitter/Instagram – ‘@CryptoTamil’
Presented by: Dr. Manoharan Ramachandran, PhD,
Blockchain Scientist, UK.

2. The Central Board of Direct Taxes (CBDT) has
already announced that people who made money
out of the bitcoin must declare and pay the
relevant tax (Capital Gains).
The department is all set to send legal notices to
those who refuse to comply with the laws.

3. Simply put, any profit or gain that arises from the sale of
a ‘capital asset’ is a capital gain.
This gain or profit is comes under the category ‘income’,
and hence you will need to pay tax for that amount in the
year in which the transfer of the capital asset takes place.
This is called capital gains tax.
Types:
 Short-term capital gains tax (Less than 3 years).
 Long-term capital gains tax (More than years).

4. Tax Type Condition Tax Applicable
Short-term capital
gains tax
When securities
transaction tax is not
applicable
The short-term capital
gain is added to your
income tax return and
the taxpayer is taxed
according to his income
tax slab.
Long-term capital gains
tax
Except on sale of equity
shares/ units of equity
oriented fund
20%

5. Income Tax Slab Tax Rates As Per New Regime
₹0 - ₹2,50,000 Nil
₹2,50,001 - ₹ 5,00,000 5%
₹5,00,001 - ₹ 7,50,000 ₹12500 + 10% of total income exceeding
₹5,00,000
₹7,50,001 - ₹ 10,00,000 ₹37500 + 15% of total income exceeding
₹7,50,000
₹10,00,001 - ₹12,50,000 ₹75000 + 20% of total income exceeding
₹10,00,000
₹12,50,001 - ₹15,00,000
₹125000 + 25% of total income exceeding
₹12,50,000
Above ₹ 15,00,000 ₹187500 + 30% of total income exceeding
₹15,00,000

6.  Calculate profit and losses of all your transactions.
 For example, you have bought some bitcoin units in August 2017 for Rs 50,000
and sold them for Rs 1,00,000 in November 2018. The holding period is under
three years. The gains are short-term capital gains of Rs 1,00,000 – Rs 50,000 =
Rs 50,000. It is added to your taxable salary and you are taxed as per your income
tax bracket.
 Suppose you had purchased some bitcoin units in January 2015 for Rs 1,00,000
and sold them in May 2018 for Rs 5,00,000. The holding period is above three
years. The gains are called long-term capital gains and are taxed at 20% with
indexation benefit.

7.  The long-term capital gains are:
 Original cost of acquisition = Rs 1,00,000
CII (Cost of Inflation Index) in the year of purchase = Rs 240
CII (Cost of Inflation Index) in the year of sale = Rs 280
 You have the indexed cost of acquisition = CII in the year of sale* (purchase price
of the asset) / CII in the year of purchase.
 Indexed cost of acquisition = 280 * (1,00,000) / 240 = Rs 1,16,666.
The sale price of the asset = Rs 5,00,000.
 Long-term capital gains = The sale price of the asset – The indexed cost of
acquisition.
 Long-term capital gains = Rs 5,00,000 – Rs 1,16,666 = Rs 3,83,333.
You have long-term capital gains at 20% = Rs 3,83,333 *0.2 = Rs 76,667.

8. Financial Year Cost of Inflation Index (Rs)
2014-15 240
2015-16 254
2016-17 264
2017-18 272
2018-19 280
2019-20 289
2020-21 301

9.  Types of activities to consider:
 Normal buy and sell.
 Staking, Farming, Savings Interest etc.
 IEO/IDO/ICO.
 Airdrops, contest tokens, free tokens etc.
 Lost in scams, lost private key, worthless tokens etc.
 Disposal matters!
 Selling crypto assets for money
 Exchanging crypto assets for a different type of crypto asset
 Using crypto assets to pay for goods or services
 Giving away crypto assets to another person

10.  Koinly calculates your cryptocurrency taxes and gives you a consolidated view.
 I personally use it.
 Don’t pay for the report. Just use it to consolidate your transactions to easily
calculate your profit/loss.
 Website link: https://bit.ly/328ugiC

11.  I have added a crypto tax calculator to the BlockIndy App.
 It exactly calculates how much you have to pay for your gains that you made with
crypto.
 App download link: https://apple.co/2YB1Agz, https://bit.ly/3c6lqbq
 Website link: www.blockindy.org

12.  Don’t forget to subscribe.
 Contact me via email : cryptotamilyt@gmail.com
 Social Media: Facebook/Twitter/Instagram - @CryptoTamil, @BlockIndy