Gains from transfer of cryptocurrency, pre-2022 amendment, taxed as ‘capital gains’

The Hon’ble Income-tax Appellate Tribunal (Jodhpur bench) (ITAT), in the case of Raunaq Prakash Jain v ITO, [2024] 169 taxmann.com 298 (Jodhpur-Trib) [28.11.2024] ruled that gains arising from transfer of cryptocurrency are taxable as ‘capital gains’ (Ruling). Notably, this ruling pertains to FY 2020-21, ie prior to the amendments made to Income-tax Act, 1961 (IT Act) in 2022 when specific provisions for taxation of ‘virtual digital assets’ (VDA) – which includes cryptocurrencies – were incorporated in the IT Act.