Is crypto mining taxable?

Before we understand whether crypto mining is taxable, let us first understand what it is.

Crypto mining serves a dual purpose. First, it generates new cryptocurrency, and second, it confirms any transaction in the blockchain/cryptocurrency network while making them trustworthy. Simply put, it is a process by which one creates new cryptocurrencies by solving highly complicated mathematical problems that help verify any transaction in the digital currency of your choice.

Activities such as gifting crypto, receiving payments, mining coins, staking rewards, airdrops, or any other Decentralized Finance transactions are termed as income. So, the taxes here are calculated with the recipient’s tax bracket. However, if you wish to hold these assets in order to sell them afterward, you would be liable to pay taxes as per the current crypto tax regime, which is 30 percent on capital gains.