What is LIFO in crypto taxation?

What Is LIFO in Crypto Taxation?

LIFO (Last In, First Out) means the most recently purchased units are deemed sold first when you sell. This can lower taxable gain if recent purchases were at higher prices. However, Indian tax rules for VDAs may not allow LIFO; they may specify FIFO or another method. Check the current law and tax circulars. If only FIFO is allowed, you must use that for cost basis. Keep records of all lots so you can apply the correct method.