A former Infosys employee secured a landmark win in the Jodhpur Income Tax Appellate Tribunal (ITAT), which ruled Bitcoin as a capital asset for transactions before April 2022. This ruling allowed the taxpayer to pay reduced taxes and claim a significant exemption under Section 54F of the Income Tax Act.

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• Former Infosys employee invested ₹5 lakh in Bitcoin during FY 2015-16.
• Sold Bitcoin for ₹6.69 crore in FY 2020-21 and reinvested gains to purchase a house.
• IT Department issued notice to tax the gains at 30% under the Virtual Digital Asset (VDA) regime of 2022.
• ITAT ruled Bitcoin as a capital asset for transactions before April 1, 2022.
• Gains were taxed as long-term capital gains (LTCG) at 20%, not under VDA tax rules.
• Taxpayer paid ₹33.6 lakh on net LTCG of ₹1.68 crore after deductions.
• Claimed ₹4.95 crore exemption under Section 54F for reinvesting gains in a house.
• ITAT noted the intention to hold Bitcoin for long-term capital gains, supporting the taxpayer’s claim.
• This ruling clarifies cryptocurrency taxation for transactions before 2022.
• Sets a legal precedent for treating pre-2022 cryptocurrency gains as LTCG if reinvested in residential property.