Crypto Taxation In India: Rethinking Section115BBH

Critical analysis of Section 115 BBH with India's crypto tax regime highlighting the inflexible treatment of losses and its impact

Introduction

If you like gold , there should be many reasons you should like bitcoin as stated by Cameron Winklevoss now in order to get a deep understanding for the same , we need to delve into the world of cryptocurrency and what does it even mean , there has not been clear definition of it in the income tax act, it has been broadly been covered under Section 2(47A) of the income tax act which defines Virtual Digital Assets broadly including cryptocurrencies, NFTs and other forms of digital assets as specified by the government , it is not applicable on Indian and foreign currency. Now, as per economic times "Cryptocurrency is a form of digital money that works on a computer network without needing a central authority like a government or bank to manage it". Further , section 4 of the act tells us about how and when the tax should