New Delhi, Aug. 18 -- Thinking of gifting Bitcoin, Ethereum or another crypto asset to a family member or friend, but wondering if it is even allowed in India, and how it works?

Pranav Pagaria, Head of Finance & Strategy, CoinDCX, explains the legality of crypto gifting and the key tax and compliance rules investors should keep in mind.

"Yes, crypto can be legally gifted in India," Pagaria noted. They are recognised as Virtual Digital Assets (VDAs) under the tax framework.

However, he added that it is advisable to maintain a gift deed documenting the transfer. Such records can become important for tax reporting when the recipient eventually sells the crypto.

Pagaria explained that "under Section 56(2)(x) of the Income Tax Act, 1961 or...