The Income Tax Appellate Tribunal (ITAT) has delivered a landmark judgment in the Raunaq Prakash Jain Vs Income Tax Department case, ruling that Bitcoin qualifies as a capital asset and is, therefore, subject to Long Term Capital Gains Tax.
Key Implications for Bitcoin Taxation:
1. Pre-2022 Gains:
Bitcoin gains before 2022 can now be taxed as Capital Gains, rather than being classified as "Other Income."
2. Post-April 2022:
The government has mandated a 30% flat tax on all Virtual Digital Assets (VDAs), including Bitcoin.
