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Help with Crypto Taxation

Hemant (Business) (4 Points)

28 February 2024

Hello Everyone,

I have a query.
Suppose I earn 10 lacs in a year from Crypto.
Flat tax would be 3 lacs, that's understood.

But if i have a Life Insurance Premium of 1-1.5 lac and 30k Medical Insurance Premium.
What will be the final tax that i need to pay? (If Crypto is the only source of income)

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2 Replies

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 29 February 2024

If your only source of income is from crypto, and you earn 10 lacs in a year, here’s how you can calculate your tax liability:

Calculate Taxable Income from Crypto:
- Your total income from crypto is 10 lacs.
- The flat tax rate for crypto income is 30%.
- Therefore, your taxable income from crypto is 3 lacs (30% of 10 lacs).
Deduct Insurance Premiums:
- You have a Life Insurance Premium of 1-1.5 lac.
- You also have a Medical Insurance Premium of 30k.
- Subtract these premiums from your taxable income:
  - 1-1.5 lac (Life Insurance Premium)
  - 30k (Medical Insurance Premium)
Calculate Final Tax Liability:
- Subtract the total insurance premiums from your taxable income:
  - 10 lacs - (1-1.5 lac + 30k) = 8.7-9.2 lacs
- Apply the flat tax rate of 30% to this adjusted income:
  - 30% of (8.7-9.2 lacs) = 2.61-2.76 lacs

your final tax liability will be between 2.61-2.76 lacs. Keep in mind that this calculation does not consider any other deductions or exemptions you might be eligible for. It’s always advisable to consult a tax professional for personalized advice based on your specific situation.

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