Bitcoin Forum

Hi ,
as  i  have  noticed,  that  many  have  now  started actively purchasing  and  selling  Bitcoins  using  your  bank accounts. so now i will strongly  advise,  you  to  keep  records  of all  transactions  occurring  in  INR , weather  it is in  cash or online. These  are  necessary  when  you file  in your  returns next  year,and  the amount  you  pay  for tax. Remember  all  bank  transactions   will always  go through  the RBI  before   arriving  to the destination  account  so all  records  are  kept. and  Tax  envision is  a  serious  crime. So please  do  follow  the practice  of  proper  tax  payment.  

I  want all of  you  to  please  follow  the practice  of  paying  your  taxes and  following  the   Tax  laws  properly.  this  atleast, will  ensure  that  our  little  community  is  law  abiding  and  working  towards  the  progress  of a  free and  decentralized  community .

hum...  i'm starting to see  cobwebs in this post now.  *cough, looks into  the  mirror  and  sees a  dusty  skeleton, SHIT !*

Clean up the OP.

Lawyers are coming into bitcointalk forums very soon to help our journey!

I think annual income below 2 lakh is not taxable.Many students and part time workers on this forum don't have to worry :)

But not every one is a  part time  worker  or a  student. and many do have  bitcoin transactions  over  2 lakh. They, need to keep records and pay tax properly.

+1
Pay taxes for what?? no roads.. shitass electric supply.. open garbages..
Our money is only gettin locked away in swiss accounts by these fuckin bureaucrats.. 

I understand you frustration. but fighting against the system head on is only gona give the  government reasons to go after the bitcoin community users.  we can  fuck up theses bureaucrats once  we have established  a  proper global decentralized currency. away from the control of world  governments.

Its in moments like this i feel the absence of crappy media.. they can replay the same fuckin news for two days in a row but cannot actually do one good thing for the community.. i mean while the rest of the world news agencies are giving out reviews.. positive negative other matter.. but atleast people know.. Sometimes i wonder why is India so fucked up on so many different levels.. and yet we are india shining.. Grrrr..  >:( >:(

Thats  ckz  the  media has  sold out. and its  alos  the same with  western  media  companies ,  with "News Corp", owning some  of  the largest  news  outlets  in the world. they control what goes in and  what comes  out.  most of the  media  companies have heir affiliation to  political parties, making news a hard thing to  be provided without bias,

I saw a very cool article on Private law and private banking from a Libertarian perspective. Way before Bitcoin and way ahead of its time!

Check it out. I do remember that it was on the top list of searches!

Thats what i am sayin.. everybody is out there to make a living even if it is at the cost of sacrificing thousands of innocent lives.. Media sucks bigtime...

Benson if you have some time do read about the concept of islamic banking.. i think you will like it..  :)

Well the important thing about  our  coin community is  to keep it  alive and thriving. we need to  show  that all bitcoiners are  tax paying honest citizens who just  wants  economical freedom .

This is the most important one. as positive views grow, more and more people start to  join in, this  revolution and a thriving  eco system can be  created. 

If the Income may taxable (if I earn that much of money), every one happy to pay taxes.

Is there any online bank like that of SwissBank where you can convert your bitcoins to real cash and save it!?

Really?

This is crazy.

Wonder if you went through the forum before making that post.

Welcome to the forums mate. But you may want to spend some time going through existing posts.
These topics have been discussed 2 weeks ago.
The Seizures have been well documented under the India thread and this discussion should be made in those threads.

Interesting thread. Has anyone actually declared an income from their bitcoins in their IT filings. I will be most interested in knowing especially if I profit from this down the road.

I realize that a number of people don't need to pay taxes primarily because they don't trade or make significant enough profits to declare but for those that have filed, what ITR forms have you submitted.

I know that people having regular incomes and interests file ITR1 form. Those that also have rentals file ITR2. I also know that regular stock, intra day traders file ITR4 where they show profits and write off losses, deduct operation expenses etc. Bitcoins are still ill defined as far as Indian taxes are considered. Should it be filed as a short term capital gain. How does one off set expenses incurred in hardware and electricity in the tax returns? Or if he has purchased the Bitcoin, he should only be paying a capital gains tax on the profits.

Eventually I hope the authorities are going to make this clear once they see the volume of people using Bitcoins in India.

Well  the current  understanding  would  make  the  declaration as  a  Capital gain (depending  on the  time  you  held the  BTC long  term or   short term.) .


Income Tax Slabs   Income Tax Rates
Where Total Income does not exceed Rs. 2,00,000   NIL
Where the Total Income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000   10% of the Amount by which it exceeds Rs. 2,00,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000   20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000                                                   30% of the Amount by which it exceeds Rs. 10,00,000

I doubt if it is as simple as adding profits to your existing incomes and figure out which slab you fall under. It would not apply for Long Term CG

Leaving aside the details of what type of capital it is (property or stock for instance) or if it should be eligible for indexation, long term CG has a flat tax rate of 20% regardless of what tax slab you will normally fall under.

The significance of inquiring about the ITR Form meant for Traders is that it will allow many tax benefits for those who repeatedly buy and sell, including expenses and off setting losses. It occurred to me later that it will not be possible because these are unregulated trades and hence don't have STT charges.

Long term  CG applies to assets you hold  for  36 months or more . then the fixed 20% is applied

The Short term Capital gain is the is calculated with the slab above.

Its the ITR 2 that you fill up  for  capital gain (Other source of income).  unless specified.

The problem here does not lie with Regulation or  non regulation, but  with the  correct Tax definition.  
Till the time The income tax department does not  specify any specification on income generated through the conversion of crypto currency it should be considered as other  income and  filled  under the ITR2 . (Better safe then sorry).

The tax calculation will not apply to the bitcoin but the  INR that  is converted.  

Edit :- Yes it is not as simple as adding profits to your existing income. i would  suggest a  consultation with a tax expert on the calculation methods.  I will  have my done this coming  financial year and will post the  details and  processes ,.

Precisely   :o :-\ :)

My money :D is on these kind of IDEAS - http://youtu.be/kE9mxQzybcQ

The power to tax is the power to destroy. Income tax and property tax are evil. Just my 2 cents.

yeah, my folks just told me that despite the fact that we worked our balls off and bought a house and 'OWN' it, we still need to pay prop tax every year ????? WTF?? lol.. Crazy stuff.

PS: They didnt say balls :)

Taxation is a form for govt to collect money from people, help people with that money and also to level the rich-poor ground. But only first part of it succeeds fully.

I am planning to declare the bitcoins i have as an asset in the filing i will do in aug for the fin year ending march 31st 2014. please share your views about this if you are willing to.

You must have skipped elementary education where they teach how democracy works. Selfish soul! Whatever you've earned was from society and paying them back, willing or unwilling is moral obligation. Because, most people are unwilling to digest the thought above, they're forced to tax. 

Thats' great move! I'd suggest, you should file soonner for following reasons:

1. Earlier you pay taxes, lower you'll have to pay considering its price is sure to rise in future.
2. Taxation on Bitcoin is inevitable now. If you early enough to give them headache of taxing Bitcoin, they'll be forced to work out issue soon. And that will be good for people involved.
3. One more issue to catalyze government to take clear stand on virtual currency.

I need to pay taxes only when i sell them. Not to just hold the obtained bitcoins.
So it will just be asset declaration this time.

If they ask me to pay taxes because i have mined some bitcoins, my argument would be to ask them to accept my tax in bitcoins or to establish authorized exchanges where we can convert bitcoins to inr. Any of these two options would be good for us :)

So asset declaration would include the coins your holding ? (in which case how would you value it ?)Or the ones that you have sold and have cash for it ? (that doesnt sound like an asset to me ... sorry im just too confused with this whole tax thing)

Bitcoin does not fall under the definition of an asset,

Lol there we go again .. back to square 1 with legal interpretations. Is there any thread about this ?

its not an interpretation. Assets, securities and derivatives all have legal definitions.

In order for Bitcoin to fall under one of them, it first needs to be defined.

Do check with a lawyer and he will agree with what I said :p

Me to lawyer : Sir/Ma'am what should I do about bitcoin not being mentioned ?

Smug lawyer (holding some btc himself) :

http://pandodaily.files.wordpress.com/2014/01/pay-your-taxes-in-bitcoin1.png%3Fw%3D1024%26h%3D768

The beauty of crypto was NO TAXES on transactions and money exchange. If anyone wants to pay taxes relating to crypto than the original satoshi idea is defeated. I advise everyone to hold high alert deals in bitcoins so these thugs wont be coming after you.

Freedom from banking and taxation slavery ;D

Why is this topic on on sticky status?

Does this bitcoin Tax thing make a serious issue?

No it doesnt, people are just happy to feed more to corrupt governments

Tax Tax Tax...

You are mining. You are earning.
You are using subsidized power.
Pay your Tax.

Income tax is not very high when compared to other countries. There are ways in which the tax can be reduced greatly reduced.

Consult a good tax agent. There are options for saving taxes using bonds and investment products.

Remember that the Government runs efficient only when it's people pay taxes properly. Paying taxes is our duty. Saying the government is corrupt is just another reason to evade taxing. India is far better than many other countries in corruption, economic growth and development. Love your country.


Thanks.

HI

I am a practicing Taxation Consultant with my own family firm of Advocates & Chartered Accountants. I am also a miner and can help you deal with any and all taxation related issues.

Please PM me for any help.  :)

Thanks & Regards,
Devesh Gupta

Good to have you among the bitcoin community :)

can we evade out taxes by converting cash to btc?

No. Money when earned is applicable to tax no matter what you have done with it.
Also, BTC is not a tool to do illegal things.
Tax Evading is a criminal activity.

Thanks for that knowledge. But anyways i am not eligible to pay taxes.

If anyone is looking to File Income tax return in Delhi NCR, you can PM me.
Bitcoins accepted as payment.

errr... you dont pay tax for btc, u pay tax for your fiat money, and i think this post is talking about paying taxes for fiat.

Thank you!

As you all might know, 31st July will be the last day for filing of your returns. Please get your PAN issued if the same has not been done. Returns can also be filed right now in advance. For issuance of PAN, filing of return, audit or any other taxation-related help, please give me call or PM me!

Thanks & Regards,
Devesh Gupta
09654712612

thank for the update

Thanks. You will be very helpful for the community.
Paying tax is to contribute to GDP and you can become a loyal person too. After all, this is our country. :)
Kindly,
         MZ

Do I still have to file a tax if my annual income is below 5 lakhs ?

If I am right, the tax should be paid if the annual income is 3 Lakhs. So if this right, then you will have to pay your tax. :)

P.S.

Tax calculation 7 years ago. It was approx. 1.1 Lak :
For tax calculations you should tell your status. Male, Female or Senior Citizen (>65 years). You did not tell your tax status. So I am giving tax for all of them.

The basic tax exemptions and tax payable on Rs.3.5 lakhs income is as follows for this running financial year 2007-08 (1-4-2007 to 31-3-2008)

1) Male <65 years of Age: Tax free amount Rs.1,10,000: Tax payable on 3.5L= Tax 54,000 + Education Cess 1,620= Total Rs.55,620/-. If you save Rs.1 lakh in 80C investments then your tax liabulity will be reduced to Rs.24,720/-

2) Female <65 years of Age: Tax free amount Rs.1,45,000: Tax payable on 3.5L= Tax 50,500 + Education Cess 1,515= Total Rs.52,015/-. If you save Rs.1 lakh in 80C investments then your tax liability will be reduced to Rs.21,115/-

3) Seniour Citizen >65 years of Age: Tax free amount Rs.1,95,000: Tax payable on 3.5L= Tax 41,000 + Education Cess 1,230= Total Rs.42,230/-. If you save Rs.1 lakh in 80C investments then your tax liabulity will be reduced to Rs.11,330/-

Note: For last year (FY:2006-07) the basic exemption limits was Male 1 lakh, Female 1.35 Lakhs. Sen.Cit.Rs.1.85 Lakhs. That means the tax limit was raised by Rs.10,000 to all for this year (FY:2007-08)

Current tax calculation:

• Assessment Year : 2014-15
• Tax Payer : Individual
• Male/Female/Senior Citizen : Male/Female
• Residential Status : Resident
• Net Taxable Income : 3,50,000
• Income Tax : 13,000
• Surcharge : 0
• Education Cess : 260
• Secondary and higher education cess : 130
• Total Tax Liability : 13,190

  ~~MZ~~

You may want to look here too : http://www.ndtv.com/article/india/income-tax-return-not-required-for-salary-upto-rs-5-lakh-a-year-245839 .

  ~~MZ~~

In the Assesment year 2011-2012 and 2012-2013 for Salaried and Pensioners who's income below 5 lakh need no file IT returns.
But that doesn't mean they need not pay Income Tax. Tax will automatically be deducted as TDS for them.
If they need any TDS refund they need to file ITR even if income is 5 lakh.
But that exemption is not allowed from AY 2013-2014.

I see you have already got a lot of good advice from many people here. For any further clarifications or for getting your taxation paperwork filed, do feel free to contact me.

Devesh Gupta
(Gupta & Co Advocates & Chartered Accountants)
A-2 Preet Vihar, New Delhi-110092
09654712612
fierydev@gmail.com

I don't make that much I make less than 1 lakhs annually and I after reading above information, I don't think I need to worry about filing tax. Thank you all for the information.

do anyone paid tax for bitcoin earnings?

and also what is the tax limit for individual in a year?

and also do we need to show the proof of every earning for tax payment? or else there is no need of any proof?

please let me know

Yes, you also want to pay tax for Bitcoin but many of them doesn't pay as they can't be located. I don't think we need to show any proof, wait for the Taxation Consultant to come. ;)

Current tax calculation:

Assessment Year : 2014-15
Tax Payer : Individual
Male/Female/Senior Citizen : Male/Female
Residential Status : Resident
Net Taxable Income : 3,50,000
Income Tax : 13,000
Surcharge : 0
Education Cess : 260
Secondary and higher education cess : 130
Total Tax Liability : 13,190

  ~~MZ~~

+1 man, right on! :D
[/quote]

I understand you frustration. but fighting against the system head on is only gona give the  government reasons to go after the bitcoin community users.  we can  fuck up theses bureaucrats once  we have established  a  proper global decentralized currency. away from the control of world  governments.
[/quote]

Wealth tax has been abolished in the current budget.

So all you early adopters, with huge bitcoin riches, you will no longer have to worry about wealth tax.  :)

do I have to pay taxes for any amount of money that enters my account n i convert into bitcoin ?,


What if I used the account for the soul purpose of converting cash to bitcoins , each time i deposit money into my account for the same it is taxable ?, that sukz.

Paying tax for Bitcoin transactions ? What kind of tax Income tax, vat or service tax?
Bitcoin coin is not regulated in India so I believe we need not to pay Any tax for Bitcoin transactions.

Am I thinking right ? Do we have any tax experts on board in our forum?

Thanks

but he said we have to pay any tax for income above 2 lakh meaning even if some cash deposit or tpt other than income is taxable?

You will have to pay tax for the Bitcoins you own. You calculate the tax looking at the INR/BTC value. You are paying tax because Bitcoin is considered as an asset. Correct me if I am wrong!

What if I bought bitcoins for my friends through my account ? And I already spent them, do I still have to pay tax ? I had to use cash deposit to my account and then convert via known xchanger.

No, you don't want to pay but your friend needs to. If he doesn't pay, you will have to pay. I didn't understand your second question. You bough Bitcoins for your friends and you used them? That means those were bough for you and if it is the case, you will have to pay the tax.

FYI:

If you have bought bitcoins, you don't have to pay tax unless you sell them and realize a gain.
On the other hand, if you have earned bitcoins, you have to pay tax.

Thank you for correcting. As far as I have read/understood, even if Bitcoin is bought, you will have to pay the tax because it is an asset. Can you please point me to right direction if I am wrong? Please give a reference too(if possible).

Income tax is only applicable if you make gains by buying and selling bitcoins, or if you get bitcoins by selling goods/services.
Indirect taxes like VAT may be applicable while selling bitcoins.

http://www.livemint.com/Money/3qcKrBcAMIisahVOyOygYK/Are-bitcoins-currency-or-asset.html

Thank you! Much appreciated.

Thanks 4 clearing abit up,

Question, I have bought a few bitcoins frm my bank account inr  and used them invest/ gamble, and I have also bought 1-2 bitcoins for my friend which I have transferred to their wallet. Is any taxable ? Also my friend did cash deposit to my account for the purchase I hope all that is not taxable.

Ok,


I do believe i would want to pay taxes even if it is just to stay on the right side of the law. Now my questions are as follows (some of them may be statements):

1) I don't have to pay tax when buying Bitcoins because i buy them with my salary which has already been taxed before reaching me. Is this statement correct?
2) When i sell the Bitcoin i own, i will only then need to pay my taxes on the profits. Now i bought a bit at $600 and now the price is $250, so this is a huge loss to me, however the government wouldn't care about this now, would they? As long as they get their pound of flesh they are happy!
3) Is there not a way to write off my losses against Bitcoin trading like professional stock market traders do? If yes, what proofs do i need to furnish? Will LocalBitcoins records do to prove my purchase of coins?
4) What about Bitcoin that i have earned through signature campaigns? Do they come under a different type of tax? If yes, what records do i show to prove i earned these Bitcoins?
5) I assume we need to declare the profits from Bitcoin trading as "Income from other sources" while filing my returns but then if it is treated like an asset then it is subject to Capital Gains Tax which is not normally declared under the head Income from other sources?


I would really like to pay my taxes to avoid getting into trouble with the government later on, but in the absence of clear regulations governing Bitcoin, i don't see a way forward and the RBI and the government are still very mum on Bitcoin and not willing to even take a step in fixing the confusion surrounding Bitcoin. It is so typical of the government, if they can't understand something, keep sweeping it under the rug then eventually either ban it or charge retrospective tax.

That is correct. No direct taxes.


That is correct.


It may be possible to offset losses from Bitcoin trading against specific heads (i.e. short term capital gains against short term capital losses). I am not sure how extensive LocalBitcoin records are. Is it like a statement? Bank records (money going in / out) + Blockchain evidence + LocalBitcoin records should be enough.


Income from other sources.


I think it would come under Capital Gains unless you are a professional trader. Not sure about this.

People will always seek to avoid paying tax whether it is a tax on income or on sales. Instead we should look at cracking down on the loopholes, seeking greater punishment for lawbreakers, and giving support and encouragement for those who do pay their taxes....... and every thing will go just fine  ;D

What happened to Subvolatil who started this thread? He is not seen since feb. I hope all is good with him.

Does anybody know him personally?
I have been around for more than a year here but really haven't met anybody in person...

Yeah, he is around.. Been stuck with a bunch of other work.
Doubt he will be back for a while.. I'll ping him with this shout out.

Hi

I have been in collecting Bitcoins from free faucet sites and collecting it in a online wallet for morethan 2 years do i also have to pay the taxes

because i am not buying or depositing amout in any site to purchase i just use free faucets and collect free sathosis and playing games through bitcoins

if in future i am having bitcoins to sell that time what i have to do to show in my income tax or i can just avoid it.

please help me out


thanks and waiting for sujestions

I would also like to know how to pay income tax for my online earnings.I also work in a Govt. Institution and my yearly income from that sums around 4.3Lac.I am paying taxes for my salary through the conventional way,but this year another income source has been added i.e my online earnings.My online earnings have exceeded now over 5 Lac.So how i am going to pay taxes for the two income sources?

What if I am using Visa card from advcash? cash withdrawn from it will not be accounted right?
Wish lawyers come into Bitcoin ecosystem to help us out.

If govt is not asking tax for btc then why to pay... However already they inposed a lot of tax and doin nothing withthat money other tahn adding it to their bank balances...

Thats right.How can we pay tax on something which is not taxable or which doesn't exist for government? If Govt. wants to impose tax on income generated by bitcoin,it should first give bitcoin its due recognition

Government imposes taxes on any income generated.
It is always better to follow the law. If you generate capital gains by selling bitcoins, better to pay tax on that.

wish bitcoin remains tax free in future as well...

There are no taxes involved in bticoins. But if u r involving backs, then Fiat is a must

Bitcoin will remain tax free only because it controlled by people and people dont want tax :)

People will be pay taxes. If he doesn't want to pay taxes then he will fired from government. Taxes pay is a good hobbit.

Agree bitcoin is controlled by people but same people are controlled by government and law.So if some tax is imposed on bitcoin or it's usage,we are bound to pay

yes but btc transaction will be almost tax free.but selling bitcoin for bank will be one reason to pay tax by you.

we don't need to wish to being tax free of bitcoin transaction.because satoshi already defined it as feesless currency. also it will always need fees just for solving block or completing transaction which is at least .00001btc.which is nill to everyone.

yes its taxable ans aslo you have limit for maximum receiving of 10lack inr in Indian bank foe saving account. you must have to pay 14% tax to government if you deposit your bank more than 120,000rs  yearly.

Bitcoin fee is not tax.Government cannot impose additional tax on spending or receiving bitcoins.One should not confuse with bitcoin fee and tax on gains from bitcoin

How do we pay taxes on BTC and how do we show it in our accounts?

You should pay taxes in INR, the same way you will pay taxes normally.
Depending on how you earned/made profits on bitcoin, you should classify it accordingly (other income/ capital gains)

For now, just consider it as an income from other sources heading and the rest should be straight forward to your accountant or CA.

Thank You! but how do I show sending and receiving of bitcoin for capital gain?

Why would you be declaring or showing any capital gain on it, if you go about showing it as an income from another source ? Capital gain won't be applied then.

You should just report your capital gains in your income tax filings.
You don't have to show sending and receiving, unless specifically asked during scrutiny.
For that, I think your wallet transactions should be sufficient.

What if someone is 18> years and making 500k+ inr every year then is it necessary for him to pay taxes ?

Yes. Age really doesn't matter in this case.
Even in the case of minors, income is clubbed with that of the guardian and income tax has to be paid.

There is no legal requirement to pay income taxes on Bitcoins capital gains in India, because the government has not yet passed any regulation defining bitcoin as a property or an asset.
In the USA this was regulated back in 2014 itself where BTC was declared as an asset and hence capital gain taxes chargeable to citizens holding BTC stock.

India gov' is still in denial about bitcoins and hence there is absolutely no requirement to pay capital gains from a legal perspective. Unless you wish to fill the coffers of the Gandhis and the Modis with your hard earned money  :)

What if someone is making it online any storing that money in bitcoin wallet. I mean cold wallet
Then why he/she will pay the taxes if not even withdrawing the bitcoins to bank account ?
I will be waiting for the answer.
Thanks  :)

You do not have to. If you're only having BTC online and in the form of fiat currency, there arises no question of tax.


Even if you are converting it into INR through an exchange you only need to pay service taxes and other state cess and there is no need to pay capital gain tax. This much I have had it clarified from my CA as well as an expert senior lawyer from Mumbai who is well versed in financial laws. Both of them were crystal on the fact that as long as there is no regulation in place treating bitcoin as an asset, paying capital gains is not necessary and waste of ones money.

All of this changes if and when bitcoin becomes a regulated asset, you would have to maintain strict books regarding buying and selling coins to show capital gains and also pay taxes on the arbitrage.

Thanks for the info this question was jumping in my mind from like 2 months before you told the answer.

thanks, this is what I am looking for...
service tax on total fiat currency?
And % of service tax

Can some help me understand.
If am selling regularly on zebpay.
How do I pay tax for it?
- Do I need to service tax on the income earned.
- Do I need to file this under business income.

Would appreciate guidance, kind of stuck with this information.

As said somewhere, this comes under "income from other sources". If you are selling on zebpay, you need to have records and statements ready with you if you are ever to file returns which you will do, because you are getting INR in exchange of bitcoins, and INR is the currency that we use so when it is exchanged, I think you will need to pay taxes, but no need IMHO.

@wpx ^^ not 2 lkhs its 2.5 lakhs

How is the tax applied on Bitcoin earnings is yet not clear. what do peoples think about it. Recentyl Income Tax officials visited a Bitcoin exchange to discuss about how can the tax applied to it. SO is there any tax currently on it or no ?

Do we have to Pay TAX as Capital Gains for BTC Earning throughout the whole financial year ? any suggestions ?

Govt of Indian has not yet defined bitcoin.

So there can be no tax on bitcoins earned and held.

What can be taxed is profit earned from trading in or selling bitcoins in fiat currency.

As Govt of Indian has not yet defined bitcoin. It is unclear under what header this income will be considered.

One cant say for sure unless govt makes a clear statement on bitcoins

LOL sam1123  ;D
I damn sure you will not find anyone that type of blind people who still don't know 500 and 1000 Rs Notes are banned.
you can try to buy bitcoin with your banned notes...lol

jjjack you should have to pay taxes otherwise you will caught by police and go to jail.you can not do anything because papu very strong.
if you have more than 3 lac rupee you must have to pay taxes you can not escape unless you use Swiss bank.lol  ;D

There are users who are selling bitcoins at very high rates on localbitcoins for your old notes, but I think you will need to show some ID on localbitcoins, but they said that you don't need any proof at banks as they are taking this via cash deposits. 10-15% higher prices for bitcoins though if you want to buy through old notes.

I still feel bitcoin is a tax free thing.

That was the whole point of the creation of Bitcoin .

If you guys keep acting like pussies then maybe the government will start regulating it no matter what.

The thing is people need to stand up against the evil the government do.


If no one pays tax and everyone shifts to bitcoin what are they going to do ?

So how you sure that its tax free in India ..

its still unclear to me how to pay tax for btc trades .. :/ i use personally coinsecure .. so when i file tax what income i mention ? and do i need to submit btc transaction details .. please can someone point me to a good CA who expert in this matter .. :/

Basically you will only have a problem if you move lakhs of money in and out of your account banks and income tax will wonder whats up but it's still legal.

But they say you must pay taxes for the profit u make on buying and selling btc. It's still iffy though. As bitcoin is not a legit job or source of income.  There are so many investors for online sites and other things like paid to click who get excused from paying tax.

Only a lawyer can answer this though as far as I know it should be legal but some btc exchanges in the early days got busted for moving around alot of money ... but the cops couldnt do anything.

Taxes are needed to be paid at any cost because in the end, you are converting your coins to a currency which is used in the country you live, so you are definitely bound to pay taxes. You will need to show statements as well as sources from where you have been gaining bitcoins, and even if it's gambling, you will need that too to be shown in your statements that you got x amount in your account through gambling.

in that case i wonder what source i should show .. as i sell items in bitcointalk and do a bit currency exchange stuff around some forums to gain bitcoin.. any suggestion ?

I don't mind paying tax.

do correct me if I'm wrong. From what I've read, I understand that we don't have to pay tax on bitcoin in India as it's not yet regulated. Once we convert btc to fiat, is when we would need to pay up.

Does the government include crypto when they say, tax payable from any source of income?


This article from coindesk regarding IRS targeting coinbase should give us an idea on what we could expect in India if btc does get regulated : http://www.coindesk.com/irs-summons-will-mean-coinbase-users/

IMHO, I really think that Bitcoins actually can never get regulated by any governments based on the volatility of the markets, other currencies being exchanged are very stable compared to this and so, I don't see any facts as well as possibilities for governments in regulating Bitcoins. Yes, they can charge us taxes when our income from BTC gets converted into fiat, because it is the only thing that we will have on hands and we need to show proofs that how we earned that money.

Though bitcoins can't be regulated by the government, and after reading this thread i conclude that people are required to pay taxes on rupees which they get after exchanging bitcoins.
But what about when people start using bitcoin debit cards on shopping, there would be no exchange to rupess, just online transactions.

I also wonder same thing .. , Also one more thing i keep wondering about that  if someone hold Bitcoin Debit card / any VISA / Mastercard of USD provided by company outside India, so when he/she withdraw USD via Local ATM to INR how the tracing process can happen by IT dept . regarding this if they want to track to that person .

Shouldn't it only be the profits that one makes off bitcoin which should be taxable?

And yes, who know what new laws could be upcoming.
What I fear is that if the govt can't find a proper way to tax bitcoin then they might just Ban it.

Indian tax laws treats bitcoins as an asset. Any profits made by trading in bitcoins is legally
taxable under IT laws. The duration u hold on to the asset is also important as that will determine
"short term capital gain" or "long term capital gain". I agree that as a community believing in free world,
we must contribute to the society by paying our due taxes.

As our finance minister says, India is by and large a non-compliant (tax) society.
The number of people who have declared incomes of over INR 50 lakhs is miniscule.

I have a question..

Suppose if I am trading BTC on coinsecure i.e. I constantly buy and sell so there is an INR profit on the Exchange but I do not redeem them to my bank account. My question is, if I would be liable for taxation on the profits? Or would that happen only after I Redeem the money in my account?

Argument in favor of taxes:

You are selling assets and buying them again. Hence there is a profit, regardless of the fact that you have not got it in your bank account yet. (Like stock trading)

Arguments not in favor of tax:

According to my bank statements, I have submitted money in a company(exchange) as an investment. And only after I redeem my investment in my bank account will the profit be accountable.

What do you guys think? Any comments?

Good question , i also want to know the same if any expert out there to elaborate about this .

I think this argument is pretty weak. You have booked profits and the profits are in an exchange (equivalent of a mobile wallet). It is just that you have not transferred the money back into your bank account.

You are right. I recently re-read the laws and it says that profits would be deemed as received regardless of the fact weather the money has been received or not. So if anyone is wondering, yes, you have to report the profits.

I have a question: is there any official statement declaring BTC as an asset? I'm asking because there are different tax slabs for normal income and capital gains income. Even different for STCG and LTCG. This would be important when it comes to self-declaring the tax.

is there any Tax on Bitcin Buy/Sell done through NRE acct.
AFAIK , and dep or withdrawal in NRE acct is Tax free. how will it wrk if I buy in USD/CAD and sell in INR ?

Yes of course I am planning consult proper auditor for tax filling as well as I returns .Before that I need to understand the earning withdrawal to bank account not trading .if any body having idea on that please let me know.

Kindly consult you CA and ask him how to treat profit from Bitcoin . Also incase if he is unaware go to some experienced and knowledgeable about Bitcoin which will guide you properly .

Consider you invest Rs X in Bitcoin through coinsecure or any Indian exchange. And after a period of time, you sell 2X btc in the exchange, then the addition 1X btc is your increase in capital revenue. Its got a tax amount of 30% of the income. File that and we are safe.

Heard a news that the RBI/Govt(not sure,but a central authority) has requested for exchanges to provide them with the list of profiles who had done transactions of $2000 and above from 2013 onwards. This means that they are coming back after almost 5 years and if we dont keep a regular check/history of the transactions, then we maybe in deep sh*t.

Always remember that, the Govt is yet to approve or reject Crypto. It can go either way. Although its highly unlikely that they can ban it since we own 10% of the entire transactions.

hello everyone,
i have a question..i m a zebpay user
if i sell my bitcoin within 12 months of purchase and let the amount remain in zebpay app and withdraw it after 12 months then tax applied will be 20% according to long term capital gain...or IT department can know that i sold the coins within 12 months and charge 30% for short term capital gain
(i read somewhere on the net these tax rates on bitcoin profits)

Hi All,

31st July is the last date for filing of IT returns without interest. For any help, feel free to contact me.

Thanks & Regards,
Devesh Gupta
09654712612

There is no need to worry because according to Government of India.Those people who have annual income above than 3 lakhs should pay tax.The small traders and part-time workers don't need to worry about that.Yes, the big traders should worry because some days earlier I hear a news in local newspaper that RBI is trying to look over Bitcoin in India and RBI is having a straight eye on Bitcoin.

Looking at the ground reality,  people, bitcoin in India still remains unregulated... The only thing we have in our hands is rumors... It is most unlikely the government will accept bitcoin as a conventional currency so it is likely to be an asset however we have no confirmatory words on that..
The amibiguity over the intent or purpose of bitcoins determines the tax you are liable to pay is naive... While traders having gains above a specified threshold have to pay 'income tax' derived from their business... If the intent is to buy and invest bitcoins in a venture... Capital gains are implied..
Even Under capital gains, there are two aspects:

Short-term capital gains is taxable as per relevant Tax-slab, which is 30% on income more than Rs 10 lakh.

Long term capital gains tax is 20%, but the time-period for investment should be at least 12 months. Hence, if a bitcoin trader holds his investment for a year, then it can be legally classified as long-term capital gains.

It's worthless to fuss about unless some guidelines and framework for taxation gets implemented..

I am a teenager and part time student worker so fortunately I don't have to worry about this stuff :) Anyway, my annual income through BTC is waaaaay less than 2 lakh so there is no need to think about it :)

India the very good things are community

Can some one please help me.

a) If i buy Bitcoin through Credit Card in USD and Sell in INR (on Indian exchanges ) i.e trading , so will thier be any problem with income tax/RBI ? becoz transaction size will be huge ,and lot of money money in and out of bank account. i am ok to pay taxes. But i am worried about FEMA/and other un-necessary torture by IT/RBI.

Please help. I am unable to get answer anywhere :(

How to you bitcoin and other altcoin

Income tax won't be a problem if you declar/pay tax. RBI maybe a problem as USD to INR conversion has happened.

Best case scenario - RBI ignores or issues warning. It has work to do.
Worst case scenario - RBI penalizes you 3 times the amount.

Just my 2 cents.

What about NRIs .
IF I can buy in EUR and then sell it in INR into NRE Account?
Usually any amount deposited in NRE account is tax free in india ?

Fiat gains: I think to be safe, you should pay taxes on fiat money capital gains in India as well.

Crypto trading gains: I don't think there is any tax treatment for crypto-to-crypto trading gains (not booked in fiat) except in the USA, where the IRS has issued guidelines to tax crypto-to-crypto trades

Taxation can be retrospective (e.g. Vodafone case). Not sure if the government will issue guidelines this tax year. My sense is they will treat Bitcoin as "commodity", so capital gains should be paid on fiat gains but not on crypto gains. They "may" ask people to declare their Bitcoin holdings in tax returns although they have not done that yet for gold, property etc.

I think income below

I participated in some signature campaign which gave me around 2 lac worth of tokens how should I show that in my tax report?

If a income may texbale

Under what head does one have to file their taxes? Short term capital gains? Because there's no policy for this, would it even attract capital gains, especially if youre not trading at all and have got btc through some other means?
Some clarity is needed on this. Regardless, as OP said, always safe to declare income.

As bitcoin is not yet legalise by government so they do not consider it as gold /silver asset or capital asset as well .it only act as external income that you get from work.income tax filing should always be there so no one can question your current money amount.capital gain is not valid for crypto market only valid for mutual fund stuff or capital asset.

every one is a  part time  worker  or a  student or many do have a bitcoin transactions  over  2 lakh. They are need to keep records and pay tax properly

Trading in bitcoins is becoming more and more popular in india.
Bitcoin exchanges adding new customers daily.
Irrespective of RBI`s warning people are investing / trading in bitcoins.
But we must not forgot that our entry in such exchanges is KYC updated.
At the time of opening an account they have taken our PAN no.
For fund transfer we have linked our banks without bitcoin wallet. Central board of direct taxes have not yet issued any guidelines for income from bitcoin trades.
Tax departments of USA consider this income as capital gain.
Though bitcoin trading is not declared legal in india, still income from such trading is taxable.
Need to pay advance tax on such income.

I know that people having regular incomes and interests. that also have rentals file . I also know that regular stock, intra day traders file Bitcoins are still defined as far as Indian taxes are considered. Should it be filed as a short term capital gain. How does one off set expenses incurred in hardware and electricity

Recently i was forced to submit KYC documents at bittrex. Do i have to include that earnings in tax submissions too?

Is there any software or program that keeps record of our profit and loss crept during P2P buy sell of bitcoins that will help in showing income while paying taxes

If you didn't withhold enough money from your paycheck-- or if you've received a 1099 in the mail from your contract work or side business -- you're probably going to owe money to the government. And if you don't pay that tax bill, you'll rack up interest and penalties that will only make it harder to settle the balance. (If you don't pay at all, of course, you risk an audit and the collection process.)

Better to avoid all that and make sure your check's in the mail by Tax Day.

People will always seek to avoid paying tax whether it is a tax on income or on sales. Instead we should look at cracking down on the loopholes, seeking greater punishment for lawbreakers, and giving support and encouragement for those who do pay their taxes.

If anyone is looking to File Income tax return in Delhi NCR, you can PM me too.Bitcoins accepted as payment.

Thanx for your information. :D :D

 my opinion it will good if you buy btcoin if you want an easy job then use for indians

 this year another income source has been added i.e my online earnings.My online earnings have exceeded now over 5 Lac.

Pf course.Paying tax is to contribute to GDP and you can become a loyal person too. After all, this is our country.

There is no legal requirement to pay income taxes on Bitcoins capital gains in India, because the government has not yet passed any regulation defining bitcoin as a property or an asset.

Its in moments like this .why is India so fucked up on so many different levels.. and yet we are india shining Angry

I don't make that much I make less than 1 lakhs annually and I after reading above information, I don't think I need to worry about filing tax. Thank you all for the information.

I have a question. Say if I buy 10 litecoin worth 40k INR from a local exchange via my Rupee funding account,transfer them to an international exchange like Bittrex ,trade them in alts and earn a 50 ℅ profit over a period of time and decide to transfer the 15 LTC to my Indian exchange to sell for cash,the amount credited to my linked bank account will be taxable under what header? If any Income Tax Act ,1961 and relevant provisions expert may guide a layman and beginner in the cryptocurrencies world. I would be grateful. Is Cryptocurrencies a commodity or Forex or other business activity ,how do I fill it up in my Income Tax Return Form No 1.

Unlike our tax payer we pay our own taxes the tax is to improve our country and for the hurricane or fire tax goes.

Is there any restrictions to collect funds in BTC to power local projects ??

They sure Gona restrict it. But they can't ban it completely.there are many other ways to trade it.

Not restrict but regulate it, admit it or not, in the short term at least regulation helps growth and acceptance.

Well taxes are useless, as government uses most of them to fill their coffers and fly in high end supersonic jets and enjoy a luxurious lifestyle with our money. I already pay more than I would like to the government.  >:( >:( >:( >:( >:(

nice thread. I think many numbers of people don't need to pay any taxes primarily because they don't trade or make significant enough profits and bitcoin is not legal in India for now.

LBC Cash in Hand best way . Meet with your buyer can get cash :P

I'm sure that many doesn't want to pay tax and this is applicable to all of us in India.

In today's newspaper I read that Income Tax department is going to send notices to 4-5 lakh high level traders who have traded Bitcoins at popular exchanges.
http://www.businesstoday.in/current/economy-politics/bitcoin-income-tax-notices-4-lakh-hnis-tax-evasion-cryptocurrency-digital-money-tax-fraud/story/266264.html

This comes after IT officials conducted surveys at 9 popular Bitcoin exchanges in India last week.

Let us know if anyone here receives the notice  :P

Any online bank like that of PayPal where you can convert your currency to real cash and save it. If the income may taxable, every one happy to pay taxes.

Any online bank like that is a SwissBank can convert your bitcoins to real cash and save.
I realize that a number of people need to pay taxes because trade for those that have filed ubmitted.
From what I've read, I understand that to pay on bitcoin in India as regulated.Once we convert btc.
I am trading BTC on coinsecure constantly buy and sell I do not redeem to my bank account.

Paid tax feeling good :)
Declared Bitcoin earnings and got clean signal from IT central processing .

Did you declare it as capital gain or "other income"? I may have to declare my earnings this year and I'm curious how you classified it.
(This is important because long term capital gain usually attracts 20% tax while "other income" falls into regular bracket which can go up to 30%)

Well i don't know much deep how my CA showed it . But its should be as Other Income , My filling checked by Central processing of IT and received no demand intimation from them :) ; as far i know he didn't mention any short term or long term capital gain instead he pushed it in my Export of Service category of my business which also attract NIL GST rate for my GST .

Thanks for sharing, this will be helpful. Appreciate it!

As of today, the government has not clarified on the questions from the bitcoin community and from the exchanges on how the taxes should be filed and the criteria. Only intimation available that I know of is that Government as said that 'Bitcoin transactions will be taxed'. That leaves so many questions open. its only Open to manipulation. ;invest in a good lawyer or CA to get you through these taxes.

And if anyone get some concrete direction, do post it here...

And one more thing...
Always pay your taxes  no matter if its extortion, or if it theft by the government or if the government does build roads or whatever.

For now you should file it as Capital gain and keep record of all your trades in excel or something like that . Then pay tax as Short term or Long term Capital gain . Talk with your CA .

https://www.coindesk.com/indian-lawyer-files-petition-demanding-cryptocurrency-regulations/

Most of the people think that it is easy to get away with taxes in India. In reality, it is very easy for RBI and banks to track your investments in BTC,thus pay your taxes.

I have seen a lot of people trying to hide taxes especially the ones using localbitcoins. They forget the fact that government can trace them based on earnings received in their bank accounts.

Many of the localbitcoins trades are cash-in-hand transactions.

Is there any limit?
and what if you have only invested the money and did not take any profits yet?

so can you guide us on where to look into taxation for cryptocurrencies in India?

Also is it valid for if people have only invested less than 1 lakh

Please respond :)

Thank you!

How come Bitcoin be regulated by Indian government as its not possible either this lawyer does not know how the technology work or he is just making a hype.

Income up to Rs 3,00,000   No tax

Income from Rs 3,00,000 – Rs 5,00,000   5%

Income from Rs 5,00,000 – 10,00,000   
20%

Income more than Rs 10,00,000 30%

I'm not fit any figure, btw I followed the Indian government rules and regulations.

Go to here for more details: https://cleartax.in/s/income-tax-savings

Hi

There is lot of confusion

now check this out

http://www.thehindubusinessline.com/money-and-banking/bitcoin-investors-may-have-to-pay-capital-gains-tax/article10004806.ece

http://www.thehindubusinessline.com/markets/icai-to-conduct-study-on-cryptocurrency/article10051824.ece

http://www.thehindubusinessline.com/opinion/taxing-cryptocurrencies-in-india/article10012267.ece

USA has classified crypto as capital asset. Indian finance ministry has said previously that crypto is not legal tender (currency), hence it makes sense for India too classifying it as  capital assets.
It makes much more sense and also makes easier for them to tax it.

Capital assets like shares ?

Long term capital gain etc ?

Hi

Finally Jaitley said "The government does not consider cryptocurrency as legal tender and will work towards eliminating illicit transactions going on through crypto assets," says Finance Minister Arun Jaitley"

http://www.news18.com/news/business/budget-2018-live-updates-presidents-salary-up-to-rs-5-lakh-a-month-veep-to-get-rs-4-lakh-per-month-1647303.html

Now who is going to ask tax for it then ?

In an interview after the budget session, Jaitley said a dedicated committee is working to further clear gov's stand on the matter. I believe in coming weeks we'll have more clarity.
I really hope they classify it as a capital asset (like USA did) and the exchanges / trading is termed legal business.

Then only 10% tax correct ?

Apparently:
STCG tax (short term, profits made within 3 years) is taxed at normal rates based on your income slab, which can go up to 30%
LTCG tax (long term, profits made after 3 years) is taxed at 20% + surcharge and education cess

Reference: https://cleartax.in/s/capital-gains-income#assets

EDIT:
10% LTCG tax if you term crypto as "equity" asset
20% LTCG tax if you term crypto as "debt" asset
There is a gray area here and everyone has their own way of interpretation until government clarifies anything.

I personally think the new move of government to put 10% tax on LTCG equity assets is probably in line with their future plans of taxing people with crypto profits. So in near future the government may put crypto into "equity" category which will allow them to tax the profits @ 15% and 10% for Short Term and Long Term respectively.

You shouldn't be into this space if you're willing to pay TAX, LMAO! Crypto Currencies are DECENTRALIZED and they meant to be FREE from anyones hold i.e. Government and their taxes etc. This space has to be CLUTTER FREE from their TRADITIONAL THEFT's i.e. TAX, CAPITAL GAIN TAX, THEIR WIFE TAX, THEIR CAR TAX, THEIR LUXURY TAX ETC.

still we r confused of govt. polices always it in unclear ,when u start understand that time another statement or a new police into take the part

I pay my tax and then I am told what I do is illegal.
can somebody explain to me how to handle this?

Government has not yet revealed how they are planning  to tax profits from cryptocurrency.
But one thing is for sure if they tax it too much , crypto money will not come back in country specially some huge black money holders, they can buy properties across the globe using cryptocurrency.

However if government make it tax free like Singapore and Japan , India will see lot of money coming back in the country even all the black money that government has been chasing for such a long time.
A win win situation for everyone.

Nothing such will happen , all the process which takes place in our country is under the vigilance of govt. the laws which would be introduced and regulated would be mended in such a  manner where the power is centralized, that's the basis for Indian democracy/

Yes you are right there are emerging scam and cobwebs stealing your personal transaction records and datas.

I think as far as i know, bitcoins are not permitted within India; RBI also didnt approved its usage, how could we pay taxes to it illegeally?

Yo are saying to pay tax to a thing that doesnt even exists in real world except internet. Their price is continuously fluctuating so i didnt invest in them an

Taxation may erradicate and locate criminals and terrorist by tracking the documents near the RBI. It will wipe out black market in btc.

the only concern with indian govt is people avoid paying taxes nt paying tax is big crime now in present govt once we declare ur income and be in tax radar it is safe to do investment in crypto currencies

If govt of india intend to take taxes on profits by crypto then they should first analyse their own rules of it not just copy-paste of USA tax rules of crypto. USA is so different and developed country. In india if govt starts collecting taxes then they should first elaborate the structure and server it all over india...I bet more than 50% are unawae about how to pay taxes.

Almost 90% of the total TRADERS in India , data you submitted to ZEBPAY and KOINEX and the exchanges have been sent to IT and ED. 2 LAKH 131 (a) Notice have been rolled out asking for ITR return on cryptos, along with that all the possible details which we can have in our crypto daily life has to be submitted to them.

Those who are regularly filing ITR haven't received the notice though and don't need to worry.

s i agree more than the tax slab they need to pay 20% of the income earned from bitcoin to IT.

https://cleartax.in/s/bitcoins-taxes-india

That 25 Questionaire wont going to help either to GOI; Moreover it will also encourage people to Jump the Gun and Devise method of redeption that will not be law abiding and People will definately fall for it .

If you are saving to pay taxes. When you are buy and sell bitcoin using your bank account because you are paid income tax if you can big investment bitcoin and earn profit.

if u are crypto trader in india it is safe to pay tax orelse income tax in india will start questioning us for source of income and penalty before to avoid all such is it safe to pay taxes

That's how it works. Same with share market. Bitter truth.
As for your question, many people seem to think crypto income falls under capital gains. Work your way from there.

Best i will recommend u to either consult an online CA or CA near you , they will suggest you better solution.

I'm into crypto for more than an year - so still a noob considering the age of this post alone!

Looking at all the complexities, even CAs aka CPAs are struggling to calculate by cost basis and rejecting a lot of clients due to lack of time.

We at BearTax have been solving this problem of calculating gains in an intelligent and optimal way instead of other tools that are in the market.
Few of them even raised millions of dollars in funding.

We are pretty new and they are free for less than 20 transactions. Currently integrated with Coinbase, GDAX, Poloniex, Gemini and soon working on integrating with Zebpay, Koinex. However, you will be able to upload transactions in a common csv format.

Hope it becomes easy for users to calculate gains and report taxes appropriately!

https://bear.tax (https://bear.tax)

If I invested 2 lacks and withdrawan 1.5 lakh a... Am I supposed to pay tax?

My anual income is 50k ,
So I m not pay tax

Invested 1 lacs and earned 9 lacs in 7 months.
How much tax i need to pay ?
Anyone here who can help me in the same.!!!

if you still believe in ache din then govt may consider to pay you 50k compensation in dreams :P

Yes, but people don't pay taxes normally than you think they will pay for BTC purchase?
People in India are so much corrupt that's why they have banned Cryptocurrency in India and I guess because of this there will be not much technological development in Cryptocurrency in India.

Government should not to apply taxes because of it's a vulnerable market here one guy gets more profit and other get in lose so how can both will pay taxes.

RBI banned no need to pay your taxes now :)

Enjoy the decision

http://epaper.bhaskar.com/detail/56625/4614031911/mpcg/map/tabs-1/2018-04-06%2000:00:00/172/12/image/

Modi done it again to clean black money

Had a doubt on the redemption of bitcoins as non-currency for people who are well-versed in crypto taxation rules.


If I sell my bitcoins to get these gift coupons, do I have to pay tax on it ( Under the tax head "income from other sources " )
eg: As redeemable re-chargable coupons / gift coupons.

As long as it is not realised as real currency , do I still have to pay tax on it ?

I am actually paying taxes on the amount I am withdrawing from Indian exchange to my bank account , but after looking at new tax form , it's looks like government want us to pay taxes on what we are holding in cryptocurrency ,that is wrong , if my holdings gets zero by any incident , that's the uncertainty , so I support taxes on crytpo , but only on the amount we are withdrawing from exchange to bank , not on our cryptocurrency holdings

Does the new tax form require one to declare the bitcoin assets ? #Just curious

which new tax form u r talking about...?

Japan using bitcoin as salary for thier employeer because of this in that country easy for transaction of crypto currency ...it will increase blockchain market

Guys, calculating taxes on crypto trading is rather easy and there is no ambiguity even in the bsence of any clear IT notification. The artcles in media are rubbish. Taxation is straight forward for all you Crypto -INR trading pairs. However it gets messy and complex in case of crypto-crypto transactions.

paying taxes is best way to come out of tax zone with income tax departments so it is better we pay taxes on time we respect crypto as well taxation in india

It seems to be very interesting topic. I consider that its good to maintain your financial records clear. Profits from trading through cryptos comes under the earning from capital gain and can be of short term capital gain or long term capital gain. if you earned profit by keeping your investment for more than 1 year your income will be tax free.Moreover your net income from capital gain is subject to any losses that you occured in that year. thus any losses on investment will be deducted from the gains to get the net gain on which the tax will be levied.
Happy trading !!!!!!!!!!!!!!  :)

Nope. I think that's not right.

LTCG is applicable for these assets
A) immovable assets/property ( land, building and house  )  - if held for more than 24 months  ( before FY 2017, it was 36 months  )
B) movable assets ( jewellery , gold , etc ) - if held for more than 36 months
C) equity/bonds/ securities ( held for more than 12 months )

Exceptions on taxation are applicable -
For A under certain scenarios ( eg : selling a land/property to buy another land /property , sale of agricultural land etc * Some conditions apply. )
For C) from 2018 - if gains are more than 1 Lakh , else it is flat 10% tax

Crypto-currencies does not fall under the exemption category of LTCG.

most e important thing about  our  coin community is  thriving. we need to  show  that all bitcoiners are  tax paying honest citizens who just  wants  economical freedom .
This is the most important one. as positive views grow, more and more people start to  join in, this  revolution and a thriving  eco system can be  created.

If you want to win a new car read this.

https://drive.google.com/open?id=1GkAl0Ibx6FvhsIQwrj7vItIR_ndsp2qf

Pls Read and if you believe me, you share for me

Remember, media shows its own views, not the peoples views.During demonitisation, some people were for it and a lot were against it. But the news showed only the happy ones.

When i Talk to friends in china, i feel india is going to be china soon(in terms of freedom of thought).

I don't think I need to pay any taxes to govt for my crypto transactions because I only invested and lost, earned nothing :D

But seriously guys if you have made any profits then do pay your taxes as tax evasion is wil get you in big troubles.

yeah I would love to if I had made any profits. But since I entered the market, whole crypto market is just keeping on going down. I don't even know whether I'll recover my original investment or not. So no gains, no taxes.

You can claim these losses from government via reverse credit through ITR-8. The government will process it with your IT return and you'll get your claim amount back into your bank account, although you'll need to attach relevant proof of losses. This is in line with RBI's latest policy circular dated 5th May 2018 to protect investors from high-risk crypto investments. More information on RBI's website.

/s

Did anyone paid the taxes on crypto. and what if it's not very big amount , then also do i need to pay the taxes( amount ranges in between 10k - 20k INR).??

Depends on what tax bracket you fall in.

Here is a calculator if this can be of any help for someone.
https://cleartax.in/s/bitcoin-tax-calculator

bitcoin is not money according to the courts so ethereum is definitely not money and ethereum tokens are definitely definitely not money
Florida v Espinoza, No F14-2923 (11th Cir 2016)
https://www.coindesk.com/court-reject-bitcoin-money-florida-espinoza-trial/

Eisner V Macomber:

https://supreme.justia.com/cases/federal/us/252/189/case.html

"The fundamental relation of "capital" to  "income" has been much discussed by economists, the former being likened  to the tree or the land, the latter to the fruit or the crop; the  former depicted as a reservoir supplied from springs, the latter as the  outlet stream, to be measured by its flow during a period of time.  For  the present purpose, we require only a clear definition of the term  "income,"   as used in common speech, in order to  determine its meaning in the amendment, and, having formed also a  correct judgment as to the nature of a stock dividend, we shall find it  easy to decide the matter at issue. After examining dictionaries in common use (Bouv. L.D.; Standard  Dict.; Webster's Internat. Dict.; Century Dict.), we find little to add  to the succinct definition adopted in two cases arising under the  Corporation Tax Act of 1909 (Stratton's Independence v. Howbert, 231 U. S. 399,  231 U. S. 415; Doyle v. Mitchell Bros. Co., 247 U. S. 179,  247 U. S. 185),  "Income may be defined as the gain derived from capital, from labor, or  from both combined," provided it be understood to include profit gained  through a sale or conversion of capital assets, to which it was applied  in the Doyle case, pp.  247 U. S. 183-185. Brief as it is, it indicates the characteristic and distinguishing  attribute of income essential for a correct solution of the present  controversy.  The government, although basing its argument upon the  definition as quoted, placed chief emphasis upon the word "gain," which  was extended to include a variety of meanings; while the significance of  the next three words was either overlooked or misconceived.  "Derived from capital;" "the gain derived from capital," etc.  Here, we have the essential matter:  not a gain accruing to capital; not a growth or increment of value in the investment; but a gain, a profit, something of exchangeable value, proceeding from the property, severed from the capital, however invested or employed, and coming in, being "derived" -- that is, received or drawn by the recipient (the taxpayer) for his separate use, benefit and disposal -- that is income derived from property.  Nothing else answers the description.  The same fundamental conception is clearly set forth in the Sixteenth Amendment -- "incomes, from whatever source derived"-- the essential thought being expressed with a conciseness and lucidity entirely in harmony with the form and style of the Constitution. "

 "It is manifest that the stock dividend in question cannot be reached by the Income Tax Act and could not, even  though Congress expressly declared it to be taxable as income, unless it  is in fact income."

 "Gibbons v. Mahon, 136 U. S. 549,  136 U. S. 559-560.  In short, the corporation is no poorer and the stockholder is no richer than they were before."

"And if, for the reasons thus expressed, such a  dividend is not to be regarded as "income" or "dividends" within the  meaning of the Act of 1913, we are unable to see how it can be brought  within the meaning of "incomes" in the Sixteenth Amendment, it being  very clear that Congress intended in that act to exert its power to the  extent permitted by the amendment."

"Just as we deem the legislative intent  manifest to tax the stockholder with respect to such accumulations only  if and when, and to the extent that, his interest in them comes to  fruition as income, that is, in dividends declared, so we can perceive  no constitutional obstacle that stands in the way of carrying out this  intent"

"[The 16th Amendment]  did not extend the taxing power to new  subjects, but merely removed the necessity which otherwise might exist  for an apportionment among the states of taxes laid on income.  Brushaber v. Union Pacific R. Co., 240 U. S. 1,  240 U. S. 17-19; Stanton v. Baltic Mining Co., 240 U. S. 103,  240 U. S. 112 et seq.; Peck & Co. v. Lowe, 247 U. S. 165,  247 U. S. 172-173. "

"In order, therefore, that the clauses cited  from Article I of the Constitution may have proper force and effect,  save only as modified by the amendment, and that the latter also may  have proper effect, it becomes essential to distinguish between what is  and what is not "income," as the term is there used, and to apply the  distinction, as cases arise, according to truth and substance, without  regard to form. Congress cannot by any definition it may adopt conclude  the matter, since it cannot by legislation alter the Constitution, from  which alone it derives its power to legislate, and within whose  limitations alone that power can be lawfully exercised."

 "We are clear that not only does a stock  dividend really take nothing from the property of the corporation and  add nothing to that of the shareholder, but that the antecedent  accumulation of profits evidenced thereby, while indicating that the  shareholder is the richer because of an increase of his capital, at the  same time shows he has not realized or received any income in the  transaction."

"It is equally true that, if he does sell, and  in doing so realizes a profit, such profit, like any other, is income,  and, so far as it may have arisen since the Sixteenth Amendment, is  taxable by Congress without apportionment."

 "Thus, the government contends that the tax "is  levied on income derived from corporate earnings," when in truth the  stockholder has "derived" nothing except paper certificates, which, so  far as they have any effect, deny him present participation in such  earnings.  It contends that the tax may be laid when earnings "are  received by the stockholder," whereas he has received none; that the  profits are "distributed by means of a stock dividend," although a stock  dividend distributes no profits; that, under the Act of 1916, "the tax  is on the stockholder's share in corporate earnings," when in truth a  stockholder has no such share, and receives none in a stock dividend;  that "the profits are segregated from his former capital, and he has a  separate certificate representing his invested profits or gains," "

"We cannot disregard the essential truth  disclosed, ignore the substantial difference between corporation and  stockholder, treat the entire organization as unreal, look upon  stockholders as partners when they are not such, treat them as having in  equity a right to a partition of the corporate assets when they have  none, and indulge the fiction that they have received and realized a  share of the profits of the company which in truth they have neither  received nor realized."

"Thus, from every point of view, we are brought  irresistibly to the conclusion that neither under the Sixteenth  Amendment nor otherwise has Congress power to tax without apportionment a  true stock dividend made lawfully and in good faith, or the accumulated  profits behind it, as income of the stockholder.  The Revenue Act of  1916, insofar as it imposes a tax upon the stockholder because of such  dividend, contravenes the provisions of Article I, § 2, cl. 3, and  Article I, § 9, cl. 4, of the Constitution, and to this extent is  invalid notwithstanding the Sixteenth Amendment."

as long as you honestly believe that you don't have to pay taxes and it's not based on some constitutional theory such as that the amendment allowing the government to collect taxes was not properly ratified then it is ok in court so if you honestly don't think you have to pay taxes on cryptocurrencies then you can argue that in court

here are people on a World of Warcraft forum having a serious discussion about paying taxes on WoW gold
https://us.battle.net/forums/en/wow/topic/20742965783

here are some people talking about V Bucks and tax
https://www.reddit.com/r/FortNiteBR/comments/7lzaqv/do_vbucks_have_tax

here is an article that states a report from congress says you might owe taxes on WoW gold
https://www.engadget.com/2013/06/19/congressional-report-says-you-may-owe-taxes-on-your-wow-income/

here is a guy that sued a company for "making WoW less fun" by selling services from 3rd world countries
https://dockets.justia.com/docket/florida/flsdce/1:2007cv21403/296927

you don't have to pay taxes as long as you are under the impression that you didn't have to pay taxes and bitcoin is not money according to the court so altcoins definitely aren't money and tokens definitely definitely are not money

https://coinlaunch.market/

https://www.wandx.co/

https://www.blockex.com/

https://cointopia.com/

https://coinlist.co/

https://republic.co/crypto

https://www.tokensoft.io/

https://ico.indiegogo.com/

https://www.youtube.com/watch?v=JHrQ3l2tT78

https://www.youtube.com/watch?v=qM0KkdQPyZw

https://eidoo.io/ico-engine/

@Tokenista  Wow fam, you really seem to have been deep into it! Some nice references there!

Stop quoting your own posts. It is considered spamming. People hate you more and it actually prevents people from visiting your site.

yeah, I have been into Cryptocurrencies since like 2012, and I have been studying some legal stuff, so I always like to look at the cases and everything around this, and throughout all of it it has seemed so far that the best way to compare it is with digital currencies from video games, because you can actually go sell gold from video games

then from there you can start thinking of it for what it is, lines of code, comparable to a composed piece of music, which the creator (developer) has given all of us for free, so we did not have to pay him for it, and the fact that we are paying each other for it is, again, comparable to video game gold, so that is where the law really is so far, except for a few little things like the IRS claims that it is taxed on Capital Gains, but the IRS has never taken anyone to court for it

and the general law with taxes, regardless of its attachment to cryptocurrency, is that if you don't BELIEVE you have to pay taxes, and that belief is not based on some Constitutional theory, such as that the Tax Amendment was not properly ratified in the States, then you don't have to pay taxes. So as long as you can HONESTLY tell a Judge "I thought it was like a line of Code or a Lyric of Music, created by someone" then you don't have to pay taxes, and that is really where the law is right now anyways, the IRS is getting ahead of themselves

Metabello, that is the guy on my Instagram, he has a big Money Laundering case for Bitcoin
https://bitcoinmagazine.com/articles/bitcoiner-faces-charges-after-selling-btc-undercover-cop/

That is unrelated to India. This thread is specifically posted in Indian section for a reason.

Has Any one filed IT based on the Income from BTC?? I don't think so.. I feel GOI doesn't even have a mechanism to figure out the transactions of BTC with Banking system.  So i seriously don't feel that people will go ahead and do it.  Please throw some light on how any Govt can track it?

yes i am already recorded

 
Thanks for your this advice, looking forward to pay all taxes on time and to keep all the records,Also thanks for making it easy to understand,

holycrap. all bank transactions do not go through RBI. RBI does not care. Government maintains database of high value transactions (>Rs10 lakh). Please do not spread false information.


#HailSatoshi

Can anyone confirm this?

I think only high value transaction matters.

Following two threads discuss taxation of Crypto in depth. Feel free to participate.

i. https://bitcointalk.org/index.php?topic=5142949.0

ii. https://bitcointalk.org/index.php?topic=5145589.0

Make sure not to spam this logicaltax link everywhere. This might get you banned. Rather have it in your signature space.

[/quote]

Thats  ckz  the  media has  sold out. and its  alos  the same with  western  media  companies ,  with "News Corp", owning some  of  the largest  news  outlets  in the world. they control what goes in and  what comes  out.  most of the  media  companies have heir affiliation to  political parties, making news a hard thing to  be provided without bias,


[/quote]

That's because the political parties have their own TV channels so they can control it all based on their needs.

For Riots, To hire idiots who put ban on Everything, To Pay officials who will terrorize innocent civilians, to pay officers who will protect the crooks at top level.

Based on this i owe zero tax, because it doesn't have calculator for trading. I made net loss in trading in 2022 and 2021, if i file tax for net loss i get a target on my back, if i don't file tax i get target on my back for not reporting crypto holding  ??? my funds were on binance kyc wallet now in private wallet. 2019-2022 my earning was in crypto less than 2.5 Lac per year.

Primary Way Would be via Centralized Exchange : Binance, Coinbase, FTX [Do you think these exchanges give a shit about our privacy once government comes knocking their door? absolutely not] One you have done KYC on Any Exchange Every Transaction you did in past and every transaction you do in future can be traced back to you.

Other ways they can easily track you is if
- You have Deposited money to CEX via IMPS.
- Frequently Used Trading App via 3G/4G or Broadband
- Done SMS verification using mobile number that is registered on your name.

Probably many other ways these are just some examples.

Is the INR record really needed in the future, maybe I should dig a trash can at a certain bank to see my transaction back, if there is such a tax rule.

I really regret the tax imposed by the current government on crypto users in india.