What is the difference between hold money on your bank and hold money in USD? I don't see any valid point to hold huge amount of USD or USDT. If you hold your USDT/USD on exchange then they would locked it for any reason like money laundering and so on. Another issue if they blacklisted your address then probably you will not be able to use your USDT and if company skip then your fund will be ZERO. I am wondering why are you so curious about hold USD/USDT. That's the disadvantage of centralized crypto-currency, crypto-currency shouldn't be centralized at all.

Why would you even store it as stable coins? If you weren't going to buy any crypto's and would only buy it, later on, might as well buy it straight later on as crypto, instead of buying stable coins right now. Besides, if the governing body of the said stable coins were to suddenly have an issue crop up, say, legal issues, you're money would basically be frozen there and then, and I doubt you'd be able to retrieve it successfully. Here's the thing, just hold it as Fiat if you aren't going to buy crypto.

Additionally, is there even a reason for hodling stable coins? Crypto, yes, for the future because they think of it as an investment so hodling it is completely understandable, but stable coins? Just buy some if you need it if you don't just let it sit as regular ol dollar.

If you want profit of holding cryptocurrency, stable coins no make sense if you are holding this.

People say that stable coin like USDT is not safe to hold, because they are not back up by the dollar, also there is news I heard USDT can be manipulated. I saw a thread that there someone asking if USDT is trusted, Do you trust USDT?, I guess you can get a further idea about why you did not trust stable coins.

If you're going to ask me, I won't hold a stable coin at all, they seem not to be trusted due to their past trust issue.

I think there is no limit to hold stable coins, and you can hold as much as you want. And if you have much usdt in your wallet, I think you can buy bitcoin and other potential coins at a low price, so you will have a chance to make a profit in the future. If you only hold usdt, you will not see the opportunity for profit because usdt price is not up and down too far, and only bitcoin and altcoin will have that chance. But that will be up to you, and if you choose to hold bitcoin or altcoin, you need to know the risk.

Your coins should be safe as long as you don't do something careless like expose your wallet's private keys one way or another.

I really don't know the technical specifics, but one of the main differences with ETH 1.0 and 2.0 is that 2.0 will move into proof of stake, meaning people wouldn't be able to mine ETH the way people mine Bitcoin. Instead of buying GPU hardware, they "stake" their ETH instead, locking them up for a certain timespan, while receiving the rewards.

Maybe you can ask the team in their Telegram group if they have any, i also saw some people talking about it in a telegram group am part of, it was such a big rise at this time where many project are not doing very well, to think that comp was as high as $231 and now correct back to $197 at current price is really surprising, although it has very small supply, total supply is 10 million out of which 2.6 million is in circulation, I guess because it is a decentralize finance project is the reason why there is much interest.
@op you can do your research and understand the project more better to know why the price has risen so much all of a sudden.

Right! I have updated FAQ, here is the excerpt of the same:

If I am understanding correctly then you are saying that you received $5000 as your freelancing fees and then you invested that income in other coin, say ETH, right? Now read the details below carefully. I hope it will help you.

See in this situation, theoretically there are two taxable events arising:

• First when you received freelancer payment, you made the income of $5000 hence tax is payable on $5000.
• Second when you bought ETH, you are now investing as an investor. Imagine you sold ETH for $5500. So any profit you made over and above $5000 i.e. $500 will be taxable as capital gains.
  

This should be correct taxable treatment for your case:

• Suppose exchange rate was $1 = ₹78  on the day when you received freelancer payment. Hence, your income will be 5000*78 = ₹3,90,000. So tax as per normal bracket is payable on ₹3,90,000
• Suppose exchange rate was $1 = ₹75 when you finally sold the ETH. Hence, your profit on investment will be (5500*75) - (5000*78) = ₹22,500. So tax as per capital gains is payable on ₹22,500.

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The above treatment I described is as per normal currency i.e. fiat currency i.e. INR or USD. However, we are dealing here with more complex issue i.e. cryptocurrency. So overall, we can eliminate first taxable event if we like as we are dealing in cryptocurrencies. Consider the following two situations:

Number One: You receive $5000 worth BTC in private wallet (such as MyCelium or Electrum) and then you send BTC to Crypto-to-Crypto Exchange where you haven't done KYC like Binance. Then you exchange ETH to BTC on Binance. Finally, you send those ETH to exchange like WazirX and convert those to INR.

Number Two: You receive $5000 worth BTC in Exchange wallet like WazirX directly. There you convert BTC to ETH and keep ETH on WazirX as well. Finally you sell ETH on WazirX for INR.

Now note: In case of 'Number Two' situation, you have to follow the treatment I described in first half of my post. You should consider your whole trade as two taxable events because you have done KYC with WazirX and they have record of your all transactions. But in case of 'Number One' situation, your first taxable event is completely anonymous so rather than showing whole trade as two taxable events, you can simply show the final conversion i.e. selling ETH for INR as you income and pay tax as per normal bracket on 5500*75 = ₹4,12,500. No need to show capital gain transaction at all.

I hope it clears most of your doubts.

There is no legal/illegal legislation in India so you do not have to pay a tax on bitcoin as long as you store that amount in the form of Bitcoins and do not transfer it to Indian Rupee.
Whenever you convert your crypto to Indian Rupee and make some profit/income, you must pay taxes (According to Income tax.)

Since you are an investor and you process the transfer or withdrawal to your account once or several times during the financial year, you will benefit from Section 44ADA of Income Tax, So you don't have to keep any record. Just think about the total receipts and pay the tax at least 50% of the receipts.

you can read this example for more:


Source and more info ----> https://bitcointalk.org/index.php?topic=5206607.0

Hey Vijay,
Thanks for your questions.





Now let us say I'am free lancer i have paid $5000 in btc next i have converted it to other coins like eth


and sold and converted it to inr which one should i show the price for it returns i mean i should show $5000..?

And also does converter also treated as trader or investor.......?

Thanks!




You don't have to pay taxes if you sold BTC for Tether (USDT). USDT also comes under the bracket of cryptocurrencies. Only income which you withdraw to bank is taxable.

For second question, it's up to you. Generally crypto-to-crypto transactions are not traceable so if you did crypto/crypto trade on exchange where you haven't done KYC and it is separate exchange from the one where you convert crypto to INR then you can consider $5000 as your purchase value and pay tax on Sell Amount less $5000. Alternatively, it is up to you if you wanna show two transactions. One bought for $5000 and sold for $3000. Other bought for $4000 and sold for $20000. But since second buying is not from your bank, I would advise you to go with first option and show whole trade as single transaction.

Yes. You don't have to pay tax if you are just holding Bitcoins. Tax is charged on income but buying Bitcoin doesn't generate any income. Income will be generated when you will sell the Bitcoins for profit. Thus the event will be taxable in the year when you will sell your holdings and make some profits. Make sure to show it as capital gains whenever you sell it.

Consider this image for further reference:

I was contacted by teosanru yesterday and he suggested the idea of improved thread on crypto taxation for the financial year 2019-20.

Currently we have this thread on taxation (written by me) and it will answer your query to some extent: https://bitcointalk.org/index.php?topic=5206607.0. But there are better ways to report your crypto income under Income Tax Act and teosanru will post a new thread on the same very soon.

Once he post the new thread, I will make the necessary amendments in the pinned thread.

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That isn't complete information and quite misleading. Please wait for new thread for updated information.