Hey I am sorry if this is a extremely noob question, but what if I buy btc from a site like paxful with UPI but never sell it then do I have to only pay tax in the year that I sell it? So just hodl-ing means no tax?
Yes. You don't have to pay tax if you are just holding Bitcoins. Tax is charged on income but buying Bitcoin doesn't generate any income. Income will be generated when you will sell the Bitcoins for profit. Thus the event will be taxable in the year when you will sell your holdings and make some profits. Make sure to show it as capital gains whenever you sell it.
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