How to tax the profit from Bitcoin investment?
How to tax the profit from Bitcoin investment?
The Income Tax Appellate Tribunal in jodhpur has issued an important order on how to tax the profit made from investing in Bitcoin. A former Infosys employee invested Rs 5 lakh in Bitcoin in 2015. Later, he sold it for Rs 6.69 crore. The profit he got from this sale was taxed at a higher rate by the Income Tax Department. But he paid only Rs 33 lakh as income tax on this sale. The Income Tax Department, which objected to this, has said that he should pay additional tax. Following this, the person filed a case in the Income Tax Appellate Tribunal in Jodhpur. In that case, the Income Tax Appellate Tribunal has ruled that the cryptocurrency sold by this person through the cryptocurrency known as Bitcoin is his capital asset. Apart from that, the tribunal has pointed out in its judgment that he made this investment from the salary he received from Infosys. The tribunal has clarified that under Section 54 of the Powered By Income Tax Act, a person needs to pay only 20% of the profit made from the sale as tax and can get a tax exemption of up to Rs 4.95 crore.
The Income Tax Appellate Tribunal in jodhpur has issued an important order on how to tax the profit made from investing in Bitcoin. A former Infosys employee invested Rs 5 lakh in Bitcoin in 2015. Later, he sold it for Rs 6.69 crore. The profit he got from this sale was taxed at a higher rate by the Income Tax Department. But he paid only Rs 33 lakh as income tax on this sale. The Income Tax Department, which objected to this, has said that he should pay additional tax. Following this, the person filed a case in the Income Tax Appellate Tribunal in Jodhpur. In that case, the Income Tax Appellate Tribunal has ruled that the cryptocurrency sold by this person through the cryptocurrency known as Bitcoin is his capital asset. Apart from that, the tribunal has pointed out in its judgment that he made this investment from the salary he received from Infosys. The tribunal has clarified that under Section 54 of the Powered By Income Tax Act, a person needs to pay only 20% of the profit made from the sale as tax and can get a tax exemption of up to Rs 4.95 crore.