Anybody here successfully filed IT returns with bitcoin gains?

[cuddaloreappu]

[Note: Do not share  info about how much is your bitcoin gains  or the amount you have filed as returns, just answer the below]

Did you successfully file IT returns with bitcoin gains , with no letter from the Big brother?

Under what heading did you classify the gains?

is it under Capital gains or Income from other source?

If under capital gains, did you do it under short term or long term?

[pavan@hosur]

hi bro you done any... i need a help from this

[chronicsky]

watching as well to see if anyone did it

[Clement Kaliyar]

The one person i know will be paying taxes for bitcoin will be Benson  I am sure it will be filled as income from other source but my doubt is that since the government has not recognised bitcoin,should we really need to file those returns. anyway i am an NRI so i am not filing anything.

[jaideep1000]

I'm a mediumish trader on localbitcoins and asked the same question to the larger traders.

One of the replied and said that he declared it as income from other sources.

I will probably do the same next year now.

[chronicsky]

just to be clear, i do pay income tax on my trading profit but recently am just holding, so am curious if we declare the profit we make from the rise of price as short term gain or long term.
probably, short term i think

[cuddaloreappu]

if btc gains are  income and if u already earn more than 10lacs then u r in 30% slab

but if long term cappy gain then its 20%

big difference..will it guys go through the tiresome trading logs... no way

[apoorvlathey]

---
 my doubt is that since the government has not recognised bitcoin,should we really need to file those returns.
---

We don't need to pay tax for transactions in bitcoins, but when we convert bitcoins to rupee, that is, selling assets (as bitcoin not yet recognized) in return for money(rupee) then we need to file IT.
By the way I haven't filed IT before, because currently I deal only in bitcoins, and never converted to cash.
Watching the thread.

[cuddaloreappu]

---
 my doubt is that since the government has not recognised bitcoin,should we really need to file those returns.
---

We don't need to pay tax for transactions in bitcoins, but when we convert bitcoins to rupee, that is, selling assets (as bitcoin not yet recognized) in return for money(rupee) then we need to file IT.
By the way I haven't filed IT before, because currently I deal only in bitcoins, and never converted to cash.
Watching the thread.

How great of a world where we need not convert it into rupees! we can only dream about this! maybe our kids will enjoy the world where they need not exchange it into a state currency

[Benson Samuel]

The one person i know will be paying taxes for bitcoin will be Benson  I am sure it will be filled as income from other source but my doubt is that since the government has not recognised bitcoin,should we really need to file those returns. anyway i am an NRI so i am not filing anything.

Unfortunately, cant advice in this space.
As soon as I get a BTC payment, i calculate the INR cost and add that to my books for tax at that rate.
So, whether I convert or not, CA sorts out what needs to be paid only for the tax component.

[eXpl0sive]

One of my friends has received some very good returns on his ETH. We discussed about how this should be declared for tax purposes.

Since India hasn't classified what kind of an asset crypto is, we looked up to next best thing, USA regulations. USA says crypto is a capital asset.

In India if you buy & sell capital asset within 3 years period, it is short term capital gain. If difference between buy & sell date is more than 3 years, it is long term capital gain.

STCG has 30% tax and LTCG has 20% tax.
So my friend decided to sell his ETH 3 years after the purchase date, so that he can pay 20% tax, instead of 30%

I think this makes sense until there are formal regulations.

[Blackshadow007]

The one person i know will be paying taxes for bitcoin will be Benson  I am sure it will be filled as income from other source but my doubt is that since the government has not recognised bitcoin,should we really need to file those returns. anyway i am an NRI so i am not filing anything.

Unfortunately, cant advice in this space.
As soon as I get a BTC payment, i calculate the INR cost and add that to my books for tax at that rate.
So, whether I convert or not, CA sorts out what needs to be paid only for the tax component.

So basically as a CS user , i can just calculate those BTC TO INR conversions and keep book record of it and then show to CA to sort out the tax inputs . Nice

[cuddaloreappu]

One of my friends has received some very good returns on his ETH. We discussed about how this should be declared for tax purposes.

Since India hasn't classified what kind of an asset crypto is, we looked up to next best thing, USA regulations. USA says crypto is a capital asset.

In India if you buy & sell capital asset within 3 years period, it is short term capital gain. If difference between buy & sell date is more than 3 years, it is long term capital gain.

STCG has 30% tax and LTCG has 20% tax.
So my friend decided to sell his ETH 3 years after the purchase date, so that he can pay 20% tax, instead of 30%

I think this makes sense until there are formal regulations.

makes good sense..i think we should all follow the lead by your friend

[eXpl0sive]

One of my friends has received some very good returns on his ETH. We discussed about how this should be declared for tax purposes.

Since India hasn't classified what kind of an asset crypto is, we looked up to next best thing, USA regulations. USA says crypto is a capital asset.

In India if you buy & sell capital asset within 3 years period, it is short term capital gain. If difference between buy & sell date is more than 3 years, it is long term capital gain.

STCG has 30% tax and LTCG has 20% tax.
So my friend decided to sell his ETH 3 years after the purchase date, so that he can pay 20% tax, instead of 30%

I think this makes sense until there are formal regulations.

makes good sense..i think we should all follow the lead by your friend

Yes, considering the fact that stocks trading gains are considered as capital gains(in USA as well as India), I think putting BTC trading in same category makes a lot of sense.

[WINBC]

One of my friends has received some very good returns on his ETH. We discussed about how this should be declared for tax purposes.

Since India hasn't classified what kind of an asset crypto is, we looked up to next best thing, USA regulations. USA says crypto is a capital asset.

In India if you buy & sell capital asset within 3 years period, it is short term capital gain. If difference between buy & sell date is more than 3 years, it is long term capital gain.

STCG has 30% tax and LTCG has 20% tax.
So my friend decided to sell his ETH 3 years after the purchase date, so that he can pay 20% tax, instead of 30%

I think this makes sense until there are formal regulations.

Makes sense. But how exactly are they going to find out for how long we've been holding the gains for? I assume they would check the transaction history which could take ages. And what about if one purchased more every day or so? Regulators are gonna have a tough time figuring this out IMO.

[eXpl0sive]

One of my friends has received some very good returns on his ETH. We discussed about how this should be declared for tax purposes.

Since India hasn't classified what kind of an asset crypto is, we looked up to next best thing, USA regulations. USA says crypto is a capital asset.

In India if you buy & sell capital asset within 3 years period, it is short term capital gain. If difference between buy & sell date is more than 3 years, it is long term capital gain.

STCG has 30% tax and LTCG has 20% tax.
So my friend decided to sell his ETH 3 years after the purchase date, so that he can pay 20% tax, instead of 30%

I think this makes sense until there are formal regulations.

Makes sense. But how exactly are they going to find out for how long we've been holding the gains for? I assume they would check the transaction history which could take ages. And what about if one purchased more every day or so? Regulators are gonna have a tough time figuring this out IMO.

If the user comes under scrutiny, I believe the burden to prove the transaction history would be on the user, not the government. So no matter what happens, you should always keep a history of all your transactions:
Fiat --> Crypto
Crypto <--> Crypto
Crypto --> Fiat

For example if you bought ETH at the time of ICO in July 2014 and you're claiming LTCG after July 2017, then if the IT people asks for proof, you should be able to show them the transaction IDs with Date/Time of when you received ETH in your wallet and when you sold them for BTC and converted to Fiat.

This can be facilitated by providing wallet history with transaction IDs / emails from exchanges / trading logs from exchanges / bank statements

Since nothing like this has happened in India yet, we don't know how this is going to turn out, so better to be prepared for such scenario rather than getting into trouble afterwards.

[karan1498]

Don't keeps your profit im fiat , always keeps your profits in crypto , so this way you get a bit out of tax slab and your money will also keep increasing!!

For ITR appoint one CA and should do the work.

[eXpl0sive]

Don't keeps your profit im fiat , always keeps your profits in crypto , so this way you get a bit out of tax slab and your money will also keep increasing!!

For ITR appoint one CA and should do the work.

Crypto is still a gamble and there's no guarantee it will keep increasing in value forever. It's an experimental tech which has changes of failure as much as success. So while we keep much of our profits in crypto, it is wise to take out some profits in fiat at regular intervals just to play it safe.

[bitcoinbabu]

i earn 1 btc per week and cashout every sunday and i dont and will not file IT gains , go and do wat u want to do

[karan1498]

Don't keeps your profit im fiat , always keeps your profits in crypto , so this way you get a bit out of tax slab and your money will also keep increasing!!

For ITR appoint one CA and should do the work.

Crypto is still a gamble and there's no guarantee it will keep increasing in value forever. It's an experimental tech which has changes of failure as much as success. So while we keep much of our profits in crypto, it is wise to take out some profits in fiat at regular intervals just to play it safe.

this is just my way . all my profits were and are in eth , and my profits are now multiply by 20 times then what i earned then . its just my opinion , in the end you only have to play it wise