Tax for crypto staking and running nodes

Tax for crypto staking and running nodes

Hi Team,

Is buying nodes considered as tax wite off ? Lets say i have a crypto node / miner for $500 and it generates an income of $5 a day can i deduct $500 from the income as that was initial investment made ?

And do i need to have a business entity to do write off or just ok with out a business entity for write off. And how is staking taxed ?

Asked 3 years ago in Income Tax

If my nodes / miners are hosted in US am i subjected to pay taxes in US or in India.

Asked 3 years ago

Hi Team will this be answered ? if not how do i request for a refund ?

Asked 3 years ago

It can be acceptable in the start if there volume is small but once it's starts growing you need to have a proper business entity and books of accounts for same.

Also when you make payment to such person you also need to check certain tax deduction provision under income tax and import of service provision under GST etc.

For detailed discussion it'll be better if we can have a phone consultation.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo

CA, Jaipur

4292 Answers

101 Consultations

Talk to Naman Maloo

Thanks a lot for the response, let's say i buy a GALA node (which is can run on VPS, basically i don't own any physical device). The cost of one GALA is almost 60L can this be shown as deductions / write off ?

Asked 3 years ago

Yes it can be shown as business expense

Naman Maloo

CA, Jaipur

4292 Answers

101 Consultations