Bitcoins: Investors need to pay 20% advance tax on cryptocurrency earnings

At least 20% should be paid as advance tax on cryptocurrency earnings as that is the rate for long-term capital gains

In the midst of all the uncertainties around cryptocurrency, there is some clarity on at least one aspect. Investors, who have made a fortune selling the virtual currency, will need to pay 20 per cent advance tax on the earnings to avoid any action by the income tax (I-T) department.

“Since there is no clarity over whether cryptocurrency is a good, capital asset or business income, the tax department is not trying to distinguish. They are just saying, pay 20 per cent advance tax on money earned,” said Sathvik Vishwanath, founder of cryptocurrency exchange Unocoin.

The I-T department recently collected