The Income Tax Appellate Tribunal, or ITAT, in Jodhpur, India, has ruled that profits from crypto sales prior to the introduction of the Virtual Digital Asset, or VDA, regime in 2022 are to be treated as capital gains.
The decision classifies crypto, including Bitcoin, as capital assets, resolving ambiguity that previously surrounded crypto taxation.
The ITAT’s decision ensures fair treatment under long-term capital gains laws, reducing the tax burden for early adopters.
The ruling derived from a case where an individual purchased Bitcoin worth $6,478 (₹5.05 lakh) in 2015-16 and sold it for $78,8063.84 (₹6.69 crore) in 2020-21.
The individual argued that the gains from the sale should be treated as long-term capital gains since the…
Jul 12 2025
