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Author Topic: Solutions on How to file Tax returns on Bitcoin Income  (Read 472 times)
amishmanish
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November 15, 2019, 03:41:25 AM
 #21

RBI never issued any ban on crypyo related transaction it just ordered it's banking system to close any transactions with crypto exchanges. .
Then why individual bank accounts gets freezed when they find their account related to crypto purchasing? Most importantly people who trades on localbitcoin will face this issue when they receive a transaction with a remark related to cryptos or bitcoins.
Thousands of people do crypto purchase and sale everyday and more like 10-20 people get this issue, even I am one of those daily buyers and sellers but not even once I have faced an issue of freezing accounts. Moreover account freeze is not that much of an issue you just need to reach your branch and answer a few questions and Tadaaa account is back. You won't even get this issue if you have an account with Good Private Bank and have a good banking history. You think anybody reads the remarks of transactions?? So don't let social media fool you because the 10 who got this problem are the one's shouting around.
Some people on LBC expressly mention not to put crypto related remarks for the transaction. It maybe the case as teosanru pointed out that private banks mag not be keeping such a tab.
It'd be useful if you can share which banks you have been using that don't seem to have an issue with this. If a few other people have the same experiences, then these apprehensions about "banks freezing accounts on mention of crypto" can be put to rest.

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TigerMart
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November 15, 2019, 04:24:17 PM
 #22

Remember to save yourself from hazzles only pay taxes on cryptos which you have redeemed in Bank. Anything held on exchanges such as Koinex, Bitbns, WazirX still counts as crypto assets not sold. So you don't need to pay tax on that. Pay TAX on "₹" That you have received in your bank account only.

So, there are a list of sources as to how you can earn your bitcoin Income:
1. Earnings from Signature Campaigns, Bounties & other Services Rendered.
2. Earnings from Regular day trading profits.
3. Earnings from Crypto Investing(Crypto brought before 2018 but sold in 2018).
4. Earnings from any other source.

So, what if I earn Crypto in one or all of the ways listed above, but never sale to get it to my bank account. Instead, if I buy gift cards and use them. For example, Amazon Pay gift card can be used to recharge mobile phone, pay electricity bill etc. Is this BTC -> Gift Card -> Product/Service a taxable event?
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November 15, 2019, 04:44:40 PM
 #23

Is this BTC -> Gift Card -> Product/Service a taxable event?

IMHO, this should not be a taxable event. Here is why...

Do you pay income tax while buying a Gift Card with INR? - NO

Do you pay income tax while buying a Product/Service with Gift Card you received as a gift? - NO

Then, why would you pay any tax in this case? I guess, you should not. This should be true irrespective of the country you are residing in.

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November 17, 2019, 03:28:55 PM
 #24

RBI never issued any ban on crypyo related transaction it just ordered it's banking system to close any transactions with crypto exchanges. .
Then why individual bank accounts gets freezed when they find their account related to crypto purchasing? Most importantly people who trades on localbitcoin will face this issue when they receive a transaction with a remark related to cryptos or bitcoins.
Thousands of people do crypto purchase and sale everyday and more like 10-20 people get this issue, even I am one of those daily buyers and sellers but not even once I have faced an issue of freezing accounts. Moreover account freeze is not that much of an issue you just need to reach your branch and answer a few questions and Tadaaa account is back. You won't even get this issue if you have an account with Good Private Bank and have a good banking history. You think anybody reads the remarks of transactions?? So don't let social media fool you because the 10 who got this problem are the one's shouting around.
Some people on LBC expressly mention not to put crypto related remarks for the transaction. It maybe the case as teosanru pointed out that private banks mag not be keeping such a tab.
It'd be useful if you can share which banks you have been using that don't seem to have an issue with this. If a few other people have the same experiences, then these apprehensions about "banks freezing accounts on mention of crypto" can be put to rest.
I have personally used 4 such banks and never had any issue
1. HDFC Bank
2. ICICI Bank
3. Bank of India
4. Central Bank of India
Until now everything is smooth with these banks. But I would also point out that I am pretty regular customer of first two banks with current accounts too. They are private banks which are too dedicated to providing comfort to customer so they might have never freezed account due to such regularity with my Bank. But yes the other two are Public sector and I don't even have any major dealing with them yet everything is smooth. You can make your decisions accordingly.

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libert19
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November 18, 2019, 03:47:22 AM
 #25

RBI never issued any ban on crypyo related transaction it just ordered it's banking system to close any transactions with crypto exchanges. .
Then why individual bank accounts gets freezed when they find their account related to crypto purchasing? Most importantly people who trades on localbitcoin will face this issue when they receive a transaction with a remark related to cryptos or bitcoins.
Thousands of people do crypto purchase and sale everyday and more like 10-20 people get this issue, even I am one of those daily buyers and sellers but not even once I have faced an issue of freezing accounts. Moreover account freeze is not that much of an issue you just need to reach your branch and answer a few questions and Tadaaa account is back. You won't even get this issue if you have an account with Good Private Bank and have a good banking history. You think anybody reads the remarks of transactions?? So don't let social media fool you because the 10 who got this problem are the one's shouting around.
Some people on LBC expressly mention not to put crypto related remarks for the transaction. It maybe the case as teosanru pointed out that private banks mag not be keeping such a tab.
It'd be useful if you can share which banks you have been using that don't seem to have an issue with this. If a few other people have the same experiences, then these apprehensions about "banks freezing accounts on mention of crypto" can be put to rest.
I have personally used 4 such banks and never had any issue
1. HDFC Bank
2. ICICI Bank
3. Bank of India
4. Central Bank of India
Until now everything is smooth with these banks. But I would also point out that I am pretty regular customer of first two banks with current accounts too. They are private banks which are too dedicated to providing comfort to customer so they might have never freezed account due to such regularity with my Bank. But yes the other two are Public sector and I don't even have any major dealing with them yet everything is smooth. You can make your decisions accordingly.

some received letters from hdfc bank and got their account closed due to crypto transactions, I am not sure how they identified that those were crypto transactions though.

Iirc I saw this in indiabits group.



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