As I am a newbie in this crypto trading industry and know bit about crypto trading and truly wanted to make money through crypto trading, but as I live in india and begin an Indian citizen, we need to pay 30% tax and 1% TDS on each profit we make even on $0.1 dollar of profit we have to pay tax without any kind of set off and if we try to avoid paying tax to government they will take strict action against us.

So I just wanted to know is there any possible way to avoid tax on crypto trading in india any kind of process through which we can trade cryptos and avoid tax on trading Crypto because the if we pay 30% tax it's almost 1/3(One third) of our profit and if government ask for less tax we could have pay happily bus 30% tax is alot.

Please help I am unable to find any way through out internet and really wanted to start the crypto journey

Maybe you can wait and see if your government is going to change anything since a recent study shows that they lost a ton of money by pushing any transactions offshore[1]. If they're being stubborn though, then you can probably ask around your local community and see if they have some options to make your trade more affordable while still paying your tax. The last choice would be to move out as mentioned above.

Btw, starting a crypto journey is a broad term. You don't have to start it by trading. Learning about Bitcoin and how it works, how to set up your wallet, etc is also a good step to take. It is not like you'll magically earn $10k and need to pay $3k for tax as soon as you open an exchange account.

[1] https://www.coindesk.com/policy/2023/11/09/indias-controversial-crypto-tax-should-be-cut-after-failing-to-achieve-aims-think-tank-urges/

Avoiding taxes is not good behavior for someone who obeys the law and I also don't know how your country handles taxes on crypto matters. In my country, people evading taxes is a crime that can impose sanctions on the offender and this is no joke because they make regulations regarding taxes as state income. If your country makes such rules then I think there is no way to avoid them because even if you insist on ignoring them then you yourself will accept the risk.

The solution is to move to another country if you object to the taxes charged or you can also wait for a revision regarding the large taxes being waived for people trading in your country. Encouragement from outside parties as the wider community in India might make your government revise these regulations and although it is a bit difficult that is the most rational plan.

You really cannot escape the taxes unless you move out of centralized exchanges based out of India because they have your KYC and also they already deduct the 1% TDS at the time of making trade or transactions so you cannot even gain much if they keep dedicating 1% TDS on every trade you make because of you are a regular trader and looking for small profits that would eat up your profit. Try using exchange like Binance or other international exchanges which are based out of India for trading but withdrawal I am not sure if your government can get data from them as I have not seen such things happening but if you are intending to withdraw huge amount then it's advisable to go for OTC. Mate this taxation rule has just killed the Crypto trading industry in India.If we try to get it transferred to other country to your contacts and get it from them through different mean that would become money laundering and get you in legal troubles. If you trade at massive scale which requires you to withdraw huge then relocate to crypto friendly nations until this rule is taken back.

Using cex as recognized platform by your country will definitely end up seeing your record of trades and you cant escape the 30% tax imposed. Well most suggest used dex for the trading purposed so they wouldnt see any of those figures being mouldered up. In anycase thats a huge mark up 30% isnt good. Is India really that desperate to cut profits from traders?

If this bothers you, then go and pay taxes, because you never know what cases happen, I don’t know your laws in your country, but from your letter I see that it is very strict, so if this is not a very large tax, then you can  pay to sleep peacefully.

The situation of the residents in the country of India is difficult: 30% tax on every law-abiding citizen; here in our country, 12%. I am still struggling with that, so 30% is a lot of pain in his pocket. Think of how 30% of his salary in one month will go to the government.

For example, if your salary is $100 a month as an employee, only 70 dollars will be left, not enough. So it is not surprising that the life situation in India is difficult. Maybe the only thing I can say to avoid that tax is that the best thing to do is to invest in mutual funds or in real estate. Bitcoin and cryptocurrency are also possible.

Though India is my neighboring country but I don't know here crypto exchanges (Centralized) is recognized or not, If the income tax is imposed on you by government, You must pay it if you don't want to face any big penalty. Because if you avoid tax then it will be easy for them to trace you as all your personal information is preserved in their hand.

Generally, the notion is taxation is on the selling and buying of cryptocurrency but mostly it's deducted only when transacted in INR or an Indian exchange where INR is withdrawable. You can avoid tax on crypto trading only if you are willing to do all your trading either on any offshore trading platform like Binance or something where TDS laws aren't applicable as of now, honestly not sure, they might even come in the future for Indians specifically. Another safer yet more complex option will be to use DEX instead of CEX. You won't have to do any KYC on these exchanges and honestly, your money isn't that easily traceable either. But no matter what you do if you want to redeem the money in INR you will always have to pay a tax on that. No choice at all.

PS: Obviously legally it's not allowed to do so & not a wise thing to do as well, so please DYOR.

  Taking tax from people under the jurisdiction of any government is normal, and there is nothing wrong with taking tax because it is legal. The only thing wrong is the percentage imposed on them, which is 30%, which in my opinion is too big and not just. It would be okay if you saw a good economy in the country of India.

  Here in our country, the tax collected from our constituents is three times less than 30%, and the percentage of our economy is improving, but in India, that is not the case, which means there are too many corrupt people. who are government officials in that country. So, I think even if you invest there, you still won't be able to get rid of that burden. The only way I see is to put money in the stock market. That's why only rich people can put money there, no poor people, or people who are unable to invest in Bitcoin or cryptocurrency.