Hi
How do we file Income Tax Returns on income from mining crypto currency? also the income is in less than 1 Cr. Also the which form should we fill ITR3 or ITR4.
Any guidance is appreciated. I paid the tax but I need to file the ITR.
Thanks
Till that date there is no guideline but as per my research, capital gain tax will be applicable.
Still there is more info I found while search about it:
Bitcoins created by mining are self-generated capital assets. Subsequent sale of such bitcoins would, in the ordinary course, give rise to capital gains. However, one may note that the cost of acquisition of a bitcoin cannot be determined as it is a self-generated asset. Further, it also not fall under the provisions of Section 55 of the Income-tax Act, 1961 which specifically defines the cost of acquisition of certain self-generated assets.
Therefore, the capital gains computation mechanism fails following the Supreme Court decision in the case of B.C.Srinivasa Shetty. Hence, no capital gains tax would arise on mining of bitcoins.
This position would hold till such time the government thinks of coming up with an amendment to Section 55 of the Act.
