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Do you have to report cryptocurrency investments as foreign assets in your income tax return?

Do you have to report cryptocurrency investments as foreign assets in your income tax return?

Most experts agree that gains or losses in cryptocurrency trading have to be reported in your income tax return (ITR). However, there is no clarity on whether the cryptocurrency investments have to be reported in ITR even if there has been no trading and no gains/losses from the same.

As per current income tax laws, an individual is required to report all of his/ her foreign assets irrespective of his/her income level. So do you have to report your cryptocurrency investments while you file your ITR for the financial year 2020-21?

What the income tax rules state
Here is what the current income tax rules state about reporting of cryptocurrency holdings in your ITR:
1) If an individual's net taxable income exceeds Rs 50 lakh, then he/she will have to report their assets and liabilities using Schedule AL of the ITR form.

2) Similarly, if an individual is holding foreign assets such as investments in stocks listed in the US, then he/she has to report all his assets and liabilities irrespective of total income in a financial year. An individual having foreign assets or who is a beneficiary of any asset or having signing authority in any account located outside India is mandatorily required to file ITR even if his/her gross total income is below the basic income exemption limit.

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