There is confusion among many on how the earnings from investments in cryptocurrencies should be disclosed in the ITR as there is no clarity on it. As per the provisions of the Income Tax Act, an assessee – having an annual income of more than Rs 2.5 lakh or who has received any payment on which tax was deducted at source (TDS) – needs to file Income Tax Return (ITR), disclosing all the earnings.
“Any earnings you make from crypto trading are taxable like any other income and should be declared in the IT returns. However, we advise our users to consult with the experts like Chartered Accountants on how to declare these earnings in ITR. I also believe that crypto regulation will bring more clarity to this as we’ll understand how crypto is classified, and taxed in India,” said Nischal Shetty, CEO, WazirX.