One of my friends has received some very good returns on his ETH. We discussed about how this should be declared for tax purposes.

Since India hasn't classified what kind of an asset crypto is, we looked up to next best thing, USA regulations. USA says crypto is a capital asset.

In India if you buy & sell capital asset within 3 years period, it is short term capital gain. If difference between buy & sell date is more than 3 years, it is long term capital gain.

STCG has 30% tax and LTCG has 20% tax.
So my friend decided to sell his ETH 3 years after the purchase date, so that he can pay 20% tax, instead of 30%

I think this makes sense until there are formal regulations.