Talking About Taxation On Cryptocurrency Mining


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Hey everyone lucky ali is here and welcome back to a new blog of mine and today we are going to disucss about crypto mining taxation. We are going to talk about Indian taxation on cryptocurrency mining. a special hardware and strong computer needed to mine cryptocurrency and as a crypto user, you know very well about that.

If you are thinking that cryptocurrency mining is a business without investment then you are wrong because it consumes electricity and as I said special hardware and a strong computer are needed so this is an investment too. Solving complex mathematical problems is the main game here and In this network, miners or nodes compete against each other. The crypto miner who solves it first and more quickly than others gets crypto as a reward. Crypto of different prices is given as a reward on every network.

This is how mining works but still, it is not child's play so you need knowledge in this field otherwise all the people would have started mining but you can see that miners are limited. Crypto users prefer trading over mining and there are several reasons behind it and we will talk about this in future posts. So how does mining tax work?

When we file the ITR of the crypto we need the data of buying price and selling price so that we can show the profit and loss. But here the case is different because you are not buying in crypto mining so in this case the price would be counted as 0 price buying. Which means you are buying at 0 and selling at any price.

Here is the drawback and that is you can't add special hardware and electricity expenses here. I have criticized the Indian government many times in the past for this negative approach because this taxation is not going to help crypto thrive. This is clearly the death of cryptocurrency. Crypto bloggers, traders, and miners all are in tough conditions because of this higher taxation.

If you are thinking that hive blogging income will be not counted in taxation then you are wrong here. similarly, airdrop hunters need to consider this thing. Even if you are doing anything that is related to crypto then you have to pay the taxes. For the development of the crypto, a balanced approach is needed. The crypto community does not hate taxation completely but it should be balanced for everyone so that it can be helpful for both government and people.

I would like to know your opinion on this topic and if you are a miner then this is a very important post for you. Do a comment below and do not forget to share this post on social media. I will meet you in my next blog take care.

Lucky Ali

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185300304_441507187470261_6630906744872723300_n-removebg-preview.pngHi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. I am always interested in learning new things and getting new experiences. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring, Thank you hive family ♥

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