Explained: Everything You Need to Know About Cryptocurrencies

Cryptocurrencies are once again in the news as the government is reportedly looking at fine-tuning the definition of income and gains for crypto assets in the upcoming budget. The Centre has sought opinion from senior tax advisors on whether the income earned from investing in cryptocurrencies could be treated as business income as against capital gains from this year onwards. But before we get into the taxation and legality of cryptocurrencies, let’s first understand this digital asset and how it really works.