From the following details compute the taxable income of Mr. Mohan for the sale and purchase of Bitcoins and NFT made during the year: Date…

CA Final · Direct Tax Laws and International Taxation · MTP · September 2025
From the following details compute the taxable income of Mr. Mohan for the sale and purchase of Bitcoins and NFT made during the year: Date Particulars Units Amount (₹) June 15, 2024 Purchase (Bitcoin) 5000 50,000 July 15, 2024 Sale (Bitcoin) 2500 25,500 July 20, 2024 Sale (Bitcoin) 2500 28,750 Expenses Incurred on Sale of Bitcoin 15,000 August 1, 2024 Purchase (NFT) 10000 1,50,000 August 16, 2024 Sale (NFT) 6000 89,000 August 31, 2024 Sale (NFT) 4000 56,000 Expenses Incurred on Sale of NFT 18,000

Suggested Answer and Working Notes:

Computation of Taxable Income of Mr. Mohan Particulars ₹ Sale of 2500 Bitcoin 15.07.2024 Sale Consideration 25,500 Less: Cost of Acquisition (2500 x 50000/5000) 25,000 Gain 500 Sale of 2500 Bitcoin 20.07.2024 Sale Consideration 28,750 Less: Cost of Acquisition (2500 x 50000/5000) 25,000 Gain 3,750 Sale of 6000 NFT 16.08.2024 Sale Consideration 89,000 Less: Cost of Acquisition (6000 x 150000/10000) 90,000 Loss on Sale of NFT [Neither setoff of loss nor carry forward of loss allowed] 1,000 Sale of 4000 NFT 31.08.2024 Sale Consideration 56,000 Less: Cost of Acquisition (4000 x 150000/10000) 60,000 Loss on Sale of NFT [Neither setoff of loss nor carry forward of loss allowed] 4,000 Taxable income 4250 Note: VDA income would be taxed @30% under section 115BBH without any deduction of expenses.

Topics: Taxation of Digital Transactions

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