Quote from: teosanru on May 22, 2022, 06:49:08 PM

Quote from: amicrypto on May 21, 2022, 09:23:08 AM

I understand the 30% capital gains tax but what would be the tax structure for people working in freelancing roles/consultants and getting paid in crypto? Do we have any guidelines/clarity on this?

No there are no guidelines as to that, the verdict as of now is pretty clear no matter how you get your Cryptocurrencies the moment you sell them or exchange them you'll be charged 30% flat tax on the profit you have made but while calculation of profit the only deduction that'll be given will be cost of acquisition, which means if you get it from freelancing you won't be getting any deduction while calculating the profit the whole proceeds that you get on sale is your profit only.

Well then that is bad isn't it. If a person is earning only 3 lakhs per annum through freelancing in crypto then he should be paying 30% of it as tax.
That costs around 90,000 INR which is a huge amount if his net income is only 3 LPA.
I think the government of India should reconsider the guidelines and allow some rebate upto 5 LPA just like how it's done in ITR.