Property : after the income tax clampdown on wazirx many users have received notice from the department how do i tax the rewards received in crypto currency crypto rewards are generally considered income and are taxed similarly to other forms of income the specific tax treatment may vary depending on the nature of the rewards heres a general breakdown 1 income tax you may need to pay income tax on the fair market value of the crypto reward at the time you receive it 2 capital gains tax if you later sell trade or spend your crypto rewards you may be subject to capital gains tax on any profits you make this tax is calculated on the difference between the fair market value when you received the reward and the sale price its important to keep good records of your crypto transactions including the date you received the rewards the fair market value at that time and any subsequent sales or trades this will help you accurately calculate your tax liability for specific tax advice its always best to consult with a tax professional familiar with cryptocurrency taxation laws in your region

Date : 2024-03-29 14:50:03