I Am Trading Cryptocurrencies Recently. If My Receipts Of Sale Of Crypto Currencies Exceeds 1 Crore. Will I Be Liable For Tax Audit? Also Is There Any GST Applicable On Sale Of Crypto. Kindly Give Your Guidance.
Ans: If Virtual Digital Assets (like Cryptocurrencies) are not held as Investment, it will be liable to tax as Income from Business and Profession. Further, in the absence of any specific exemption, in my view, tax audit provisions are likely to apply for turnover above Rs 10 crore, subject to fulfilment of other conditions.
GST on Cryptocurrencies is at proposed stage and not yet implemented.
