Like I said earlier, there was a typo in the bill and government corrected the same in the final draft of the bill but guess what, the correction is entirely opposite to what I was expecting. Instead of including the term 'other' in the first clause, government has removed it from the clause (b) as well. Here's the copy of the final bill amendments:



So, the bottom line is we can no longer set-off losses from the profits. Government will only consider absolute profits for the tax purposes which is highly inappropriate and as a member of Indian Crypto Community, I will try to oppose it. But as of now, this is the legal position from the government.

F&O trading in crypto is same as the normal trading for profit calculation. The realized gains i.e. the net of the profit and loss from all of your closed positions shall be taxable @ 30%.
However, if you send the whole amount to the Unocoin and convert it to INR, simply pay tax on the INR amount withdrawn to the bank.
For Options, you can further take the deduction of amount paid as premium as it will be considered as your Cost of Acquisition.

€38,970.5420

webtricks

Why not

Preface: To keep the thread short and readable, I have decided to cover one issue in each thread. This thread specifically covers the taxation on profits earned by crypto traders and investors as per the bill announced in the recent budget. I will cover the taxation on other incomes in the future threads.

Government has finally announced the specific section for the taxation of cryptocurrencies. However, the budget speech was bit ambiguous especially about no loss set-off rule so it took me a little digging and discussion with other professionals to finally understand the whole new taxation proposal (remember it's still a proposal, bill is not yet passed in the Parliament). In this thread, I will be discussing the new proposed section i.e. Section 115BBH and how will it effect the profits earned by traders and investors.

If I summarize the section in a single line then 'every realized gain made by a trader is taxable @30%'. However, it raises several questions so let's answer them one by one:

Question 1: What is a realized gain?
Answer: A financial year runs from April 1st to March 31st. If you buy BTC on 1st October for ₹20 lakh and sell it on 1st January for ₹30 lakh then this is called a realized gain and you have to pay tax on the profit of ₹10 lakh. However, if you don't sell the BTC and its value increases to ₹35 lakh on 31st March then ₹15 lakh is your unrealized gain and no tax is to be paid.

Question 2: How to calculate my gains?
Answer: Every investment is a separate taxable event. To calculate profits, you have to see every crypto investment of yours in an isolation. Profit is the difference between the price at which an investment is sold and the price at which it was bought (i.e. cost of acquisition). Calculation gain on each of your investment sold during the year, club all the gains and pay tax on the aggregate profit.


Question 3: Do I have to pay tax only when I realized the money in INR i.e. withdraw the money to the bank?
Answer: No, you have to pay tax every time you make a realized gain, there is no condition that the amount has to be withdrawn to the bank. Section 115BBH specifically includes this statment - 'income from the transfer of any virtual digital asset'. Here's an excerpt from the definition of transfer as per Section 2(47):


The word 'exchange' covers all transactions related to converting one cryptocurrency to another. So, if you purchase ETH for 2000 USDT and then sell it for 2300 USDT, you still have to pay tax on 300 USDT even when you haven't realized USDT to INR. Keep this in consideration when you are doing trading on the exchanges like WazirX, every sale/purchase transaction will be considered for taxation even when you haven't withdrawn any profit to the bank.


Question 4: Am I allowed to set-off loss made on one trade with the profit made on another crypto trade?
Answer: This is probably the most asked question by the traders since the proposed bill is out and to be honest government itself made it very unclear in the bill. I will be discussing this as per my understanding and I maybe wrong on this one. Let us first see the sub-section (2) of Section 115BBH where it is announced:


The clause (a) made it very clear that nothing is allowed to be deducted against the profit earned from crypto trade except cost of acquisition i.e. the buy price. However, clause (b) contradicts the above clause. It states that any loss from the crypto trade cannot be set-off against any income under any other provision of the act. The term 'other' here signifies that loss cannot be set-off against any income other than the crypto income which means that the loss from the one trade can be set-off from the profit made on the other crypto trade.

My take: Investors will be allowed to set-off losses from the profits and they will only have to pay tax on the net profits earned during the year. The clause (a) has a typo and most probably will be rectified and the term 'other' will be included in the first clause as well when the act will be enacted in March 2022.


If you have any question related to taxation on crypto trading and investment, feel free to ask in the thread.

I have few questions about Rollbit NFTs (aka Rollbots) and RollBit tokens (aka RLB):

• Is it true that Rollbots are on Ethereum chain and RLB are on Solana chain? If yes, then are these the official links: Rollbots | RLB
  
  
• I was going through RLB Whitepaper and noticed that Rollbots owner will receive RLB token but they have to stake the nft. Since, both nft and tokens are on different chains, will token drop be done manually or is there some kind of bridge which will link SOL address of the nft owner to Rollbots ownership?
  
  
• 77.7 RLB tokens are airdropped on some of my SOL addresses (one with NFTs). Are these from the official airdrops? If yes then what was the criteria and eligibility for the same?
  
  
• I see that RLB-based lottery game is explained in the WP. It is based on Bitcoin blocks but involves staking of RLB tokens. So, whether these RLBs mentioned in WP are actually staked on Solana staking program or first user deposit those on Rollbit and staking happens on website (off-chain)?
  

The intention of Vitalik's post quoted in the OP is not to highlight the lack of decentralization in pegged coins but the risk associated with the increasing use of cross-chain applications. Due to the network consensus, blockchains are immune to fund stealing even if the chain is under 51% attack, the best they can do it put censorship on the new transactions. But if funds are locked in bridging contracts, attacking any one of the chain would help the attackers to steal the funds by arbitrarily settling the contracts.

Although the problem is not serious at present but if DeFi applications continue to add more and more PoS-based good-for-nothing chains in the mix, at one stage it will become cheap to exploit the cross-chain applications because attackers only need to exploit one of the chain to disturb the settlement contract.

The Reddit post quoted in OP is good read for multi-chain enthusiasts.

If you have an experience in running the Crypto projects with decent traffic, I would love to hear your opinion about the best Domain Registration Services which provide an adequate trade-off between anonymity, security and reliability. Also, which web hosting should I choose if I am looking for a long-term relationship, dedicated servers with proven record of up-time, performance and safety? All suggestions will be appreciated. Thanks.

PS: Which web hosting service does Bitcointalk use?

I am following NFT market from half a year and noticed contrary to what you experienced. In my opinion, NFTs are highly correlated with the crypto price movements. Ethereum and Solana are the two most popular NFT ecosystems and whenever their prices decrease, people tend to liquidate their NFTs too like any other altcoin. Here is the price comparison of Aurory (one of the best Solana projects) in SOL with the SOL price in USD.



You will notice that the first dump in Aurory price happened when SOL went down by 15% on 30th October, second dump came in the last week of Nov when SOL broke by 20%. The third and most significant dump happened near 8th Dec when SOL prices went downhill with the rest of the crypto market.

However, I agree that the recent trend is contradictory. NFT prices are going in the opposite direction to the cryptos since last week. But it's mostly due to the re-surge of Web 3.0 hype in 2022. NFT market volume has increased 15x since 2nd January. If this trend continues, we may see NFT market trend detaching from the primary crypto market trend but we would need much more than PFPs and shitty games from the NFT projects for that to happen.

Thanks for the message, yeah I would be glad to take part in the series, would be fun to play with the old buddies once again. It's best to stick with a single game every week, Sunday best, Saturday fine, anything else nah for me. What were the timings previously, 6PM UTC? I would prefer 5PM but okay with 6PM either, please don't delay more than that. I am fine with any buy-in. Let's go.

Gambling is very different from Lottery in terms of risk-reward relationship. In gambling, you take a risk and get a reward (or lose money) immediately. The instant relationship between risk and reward generates excessive dopamine in the brain. This excessive flow of dopamine induces the gambler to continue betting more if he is on winning streak or significantly increase the bet amount if he is losing.

But lottery is not as risky as gambling because there is adequate time differential between risk taking and reward winning which balances the dopamine and player doesn't make the sentimental decisions. Secondly, the amount at stake per action is much lesser in lottery as compared to gambling. I was trying the new lottery game launched on BC.GAME earlier today and the cost per ticket was only $0.10. So, even if I lose, it's not like I am going to spend whole of my stack on the lottery tickets the next day which significantly reduces the risk of bankruptcy compared to gambling.

Nevertheless, considering the winning probability in lottery, it is surely an economically wasteful activity and in majority of the cases always a sunk cost (unlike gambling). But it's human tendency to always seek for hope and the major reason why lottery still exists after the 6 centuries since the first recorded lottery draw.

Merely comparing the volume on the buy and sell sides is not the best way to determine the market trend. I can put a huge buy order, let say 20% below the last trade price. It will increase the volume on the buy side but it doesn't mean my order will result in bullish price trend. People mostly use order-book to determine the support and resistant level and design the limit order strategy accordingly.

The comparatively better indicator of price trend is the volume of trades executed. It is indicated using a bar diagram immediately below the price line on the chart. There can be 4 indicators - 'rising price with increasing volume', 'falling price with increasing volume', 'rising price with decreasing volume' and 'falling price with decreasing volume. Each one of these reflects different price trend, you can explore more about it.

Loyce's answer above it bit ambiguous so I will clear the things:

Nope, that won't work.

A miner only needs the hash of previous block to start mining the next. So, irrespective of halt time, miner can start mining the next one as soon as the current block is mined. Halt time won't have any impact on the network difficulty or target. The miner can still very much find the hash during the halt time and then broadcast it to the network after the half time is over.

The only difference this mechanism gonna make is that we won't see two simultaneous blocks getting mined within 5 minutes. On the negative side, we will see the fork happening on the regular basis.

Thanks. Ain't free for next couple of months. So, most probably will try to add this in January. However, no commitment.


Haha, good to know that I made you JS freak. And about completing the script in 4 hours, I re-used major chunk of the code for user authentication from my other project that I built before for learning purpose. However, the game script and other functionalities were written on that very day.

Username: webtricks

Game 1: 69' 2-0 Liverpool
Game 2: 69' 1-0 Arsenal

Entry Fee paid: 2da1b6a4e57687e9285de4aec2c67891589d3aa6547b2f4975b660a11f4a650e

By the way, returning funds to the users isn't that non-viable or costly as claimed. Currently, you can get BTC transactions confirmed in less than 10 sats/vbyte. In fact, my above transaction had 5 sats/vbyte fees and it got confirmed within next block. Since, there are 6 users who paid in BTC, fees will just cost 0.00004-0.00005 BTC ($2-3). But it would be best to keep the fun continue and hold with the pool until the cricket returns. 

Well, that depends upon which of the two will happen earlier. If IPL resumes, we can continue with the current pool. If it's scrapped and/or WC happens before it, we can make a pool for WC with same prizes.

WC would be nice tourney for pool. Let's do that if the current season of IPL won't resume.

I forgot about the payment. I will send 0.0004 BTC to the pool tomorrow so everything is even.

Dear Indian Crypto Community on Bitcointalk,
I don't know if you guys are yet aware of this or not but Sandeep Nailwal, Co-founder of Polygon (one of the most prominent Indian crypto project) has launched a campaign to raise funds for providing reliefs to the needy of our country in the Covid Emergency. He posted the announcement on Twitter (link) three days ago and since then the campaign has garnered a lot of attention and praise from the whole crypto community and already raised over $2M. The likes of Vitalik (Ethereum) and Justin (Tron) have already donated huge sum to the cause. Even, Brett Lee, a famous Australian former cricketer has stepped forward and donated 1BTC to the fund few hours ago.

This is a great and example-setting initiative which clearly depicts that we, 'The Indian Crypto Community' care for the country and building solely for the betterment of our nation. If you guys want to join in the initiative, you can donate to the cause as well. And this isn't all! Since the fund is community-driven, you can actively take part in the cause and play hand in the efficient utilization of funds (100% transparency).

I am leaving few links below so you can read about the campaign in details:

Official Website: https://cryptorelief.in/
Announcement Tweet: https://twitter.com/sandeepnailwal/status/1385968552679727113
Official Twitter Handle: https://twitter.com/CryptoRelief_
Official ETH Address for funding: https://etherscan.io/address/0x68A99f89E475a078645f4BAC491360aFe255Dff1
Addresses for different funding coins: https://cryptorelief.in/donate

I would suggest to double check the addresses from the website with the Twitter link. There are always the bad elements in the society who try to make benefits from such situation.

PS: I am not associated with Polygon, nor am I active contributor to the cause. But as a member of Indian Crypto Community, the least I could do is support the cause monetarily. Hence, I did my part and expect you guys to contribute as well.