A Complete Guide on How to Buy Litecoins

Buy Litecoin in India and understanding crypto tax in India is essential for any cryptocurrency enthusiast. Platforms like the Plena Finance App make it easier to purchase and manage cryptocurrencies while providing valuable information on tax regulations. This guide will walk you through the process of buying Litecoin and explain the intricacies of crypto tax in India.

How to Buy Litecoin

1. Download the Plena Finance App: Start by downloading the Plena Finance App from the Google Play Store or Apple App Store. This app is known for its user-friendly interface, robust security features, and multiple payment options.
2. Create an Account: After installing the app, you need to create an account. Provide your email address, set a strong password, and complete the KYC (Know Your Customer) verification. This process involves submitting identification documents such as your Aadhaar card, PAN card, and a selfie for identity verification.
3. Deposit Funds: Once your account is verified, deposit funds into your Plena Finance wallet. The app supports various deposit methods, including bank transfers, UPI, and debit/credit cards. Ensure you deposit Indian Rupees (INR) to avoid complications with currency conversion rates.
4. Purchase Litecoin: With funds in your account, you are ready to buy Litecoin. Navigate to the Litecoin (LTC) section in the Plena Finance App and place an order. You can opt for a market order to buy Litecoin at the current market price or a limit order to set your desired purchase price. The app provides real-time market data to help you make informed decisions.
5. Store Your Litecoin: After purchasing Litecoin, it is crucial to store it securely. While you can keep your Litecoin in the Plena Finance App’s wallet, transferring it to a personal wallet offers enhanced security. 

Crypto Tax in India

Understanding crypto tax in India is vital for complying with the law and managing your investments effectively. Here’s an overview of how to calculate Crypto tax in India:

1. Taxable Events: In India, cryptocurrencies are considered assets. Consequently, buying, selling, or trading cryptocurrencies, including Litecoin, are taxable events. Profits from these activities are subject to capital gains tax and understanding to calculate Crypto tax in India is necessary for that.
2. Capital Gains Tax: There are two types of capital gains taxes in India:

• Short-Term Capital Gains (STCG): If you sell your cryptocurrency within 36 months of purchase, the profit is classified as short-term capital gains and is taxed according to your income tax slab.
• Long-Term Capital Gains (LTCG): If you hold your cryptocurrency for more than 36 months before selling, the profit is considered long-term capital gains and is taxed at 20% with the benefit of indexation.

2. Income from Other Sources: If you earn cryptocurrency through activities like mining, staking, or airdrops, the income is classified as “Income from Other Sources” and is taxed according to your income tax slab.
3. Reporting and Compliance: It is crucial to report all cryptocurrency transactions accurately in your income tax returns. The Plena Finance App helps track your transactions, providing necessary details for tax reporting and calculating crypto tax in India. 
4. GST on Crypto Transactions: Goods and Services Tax (GST) may apply to cryptocurrency transactions involving goods and services. This is an area still evolving, and the government is expected to provide more clarity.