In case your made loss (when you bought high and sold for less), you need not pay tax. However, you have to file return with nil tax.
What if we apply this scenario on all the cases? What I mean is, what if someone is earning income in crypto through freelancing/salary/trading/etc. but at the end of the year their total income from all that is under the taxation limit (which is 2,50,000 if I am not mistaken). Do they still have to file return?
No, you are not required to file the return if your income is below 2,50,000. However, some people still like to file return even if they have income below minimum limit because Income Tax Return is most concrete evidence of your income. It may come handy if you have to submit income proof required for some documentation, say applying for Visa or Passport.
But still you have complete autonomy to choose if you want to file return or not.
By the way, thank you for doing this. This information is very important and a positive step towards legalization of crypto in India.
Glad, you liked it! Hope Bitcoin won't be banned in India.
