how to convert crypto to inr without paying taxes?

[bitnote]

Hi everyone,
I have around 10L in USDT and i want to convert it into INR, and i never paid any taxes because i came below the tax slabs. And i don't have enough knowledge about finance and taxation. can you guys please help me how can i convert this crypto to INR without paying taxes?

Can i convert 1Lakh every month? can it be detected?
or what if i send the crypto to my Wazirx and convert 50 thousand every month?

please share ways to convert crypto to INR without paying taxes. the income is savings of 5 years i don't want it be halfed by paying taxes. thanks

[Bitcoin Smith]

First of all Wazirx is busted, don't deposit any crypto there and if I am not they already disabled it but just to warn you don't do stupid things.

And I won't trust any Indian exchanges either, you can use P2P or Binance depends on which one is convenient for you.

Regarding the tax slab, you should pay income tax if you have more than 3 lakhs as per the new regime and upto 7lakhs there's five percent tax rate with some rebates so you can't convert 1lakh per month if you want to pay zero tax.

If you have family members like brother who is still going to college or grandparents getting any income then make use of their accounts along with you let's say you have 4 persons then you can sell 2.5 lakh INR worth crypto to reach person's account so you won't pay anything as taxes.

[pakhitheboss]

Hi everyone,
snip..

Please remember the following information:
To avoid paying taxes, consider using peer-to-peer (P2P) services on international exchanges. However, be aware that P2P services can be risky, so do your research before using them. Paying taxes on the amount you plan to cash out is still advisable. If the government questions the source of the funds in your bank account, not paying taxes could cause significant trouble. Avoid using international exchanges that are compliant with the Financial Intelligence Unit (FIU), such as Binance, Kucoin, and OKX.

[bitnote]

Hello, thank you for your responses.

I have an idea, but I'm not entirely sure about it. Can I use Binance, Bitget, or any international exchange to exchange crypto to fiat through P2P? I’m considering starting with ₹50,000 in the first month, then around ₹20,000 to ₹30,000 each month thereafter. Would this be a safe approach to avoid detection by banks?
Additionally, my father has an account with over ₹3 lakh in fixed deposits and about ₹1 lakh in savings. Can I withdraw money to his account via P2P and then transfer it to mine, treating it as a gift that wouldn’t be taxable? The amounts would be relatively small, like ₹50,000 to ₹1 lakh.

Is OKX exchange operational in India? I recall receiving an email a few months ago stating they were not operating in the country.

How safe is P2P trading? Can I trust users based on their reputation on platforms like Binance, or should I verify additional details, such as their names and what verification they have done (but they can be expensive to trade with)?

[pawanjain]

Hello, thank you for your responses.

I have an idea, but I'm not entirely sure about it. Can I use Binance, Bitget, or any international exchange to exchange crypto to fiat through P2P? I’m considering starting with ₹50,000 in the first month, then around ₹20,000 to ₹30,000 each month thereafter. Would this be a safe approach to avoid detection by banks?
Additionally, my father has an account with over ₹3 lakh in fixed deposits and about ₹1 lakh in savings. Can I withdraw money to his account via P2P and then transfer it to mine, treating it as a gift that wouldn’t be taxable? The amounts would be relatively small, like ₹50,000 to ₹1 lakh.

Is OKX exchange operational in India? I recall receiving an email a few months ago stating they were not operating in the country.

How safe is P2P trading? Can I trust users based on their reputation on platforms like Binance, or should I verify additional details, such as their names and what verification they have done (but they can be expensive to trade with)?

P2P trading comes with it's own risk and it's not only applicable to India but all the places.
We have already heard cases about bank accounts getting frozen due to P2P trades.
This is one of the reasons why you should avoid trading with strangers especially if your bank account has a huge amount of money.

In this case, you should avoid using father's bank account since it has FDs in it.
You can try P2P trading with your bank account but try to find a reputed P2P trader who has a good amount of trades executed and a good completion rate.

Also, try using the same P2P trader so that you don't attract unwanted attention from the bank.
You won't get any notice from IT department if your transaction is below 5 lakhs.

[pakhitheboss]

P2P trading comes with it's own risk and it's not only applicable to India but all the places.
We have already heard cases about bank accounts getting frozen due to P2P trades.
This is one of the reasons why you should avoid trading with strangers especially if your bank account has a huge amount of money.

In this case, you should avoid using father's bank account since it has FDs in it.
You can try P2P trading with your bank account but try to find a reputed P2P trader who has a good amount of trades executed and a good completion rate.

Also, try using the same P2P trader so that you don't attract unwanted attention from the bank.
You won't get any notice from IT department if your transaction is below 5 lakhs.

I still think it is a bad idea if he is avoiding taxes and it might be good for him to pay any tax that he incurs while converting crypto to fiat. What you have mentioned is all good and the right thing to do but we never know how and when the Income tax department finds out about not paying any tax. I have read many users got letters for transactions that were made after 2022 for which they did not file returns.

[pawanjain]

P2P trading comes with it's own risk and it's not only applicable to India but all the places.
We have already heard cases about bank accounts getting frozen due to P2P trades.
This is one of the reasons why you should avoid trading with strangers especially if your bank account has a huge amount of money.

In this case, you should avoid using father's bank account since it has FDs in it.
You can try P2P trading with your bank account but try to find a reputed P2P trader who has a good amount of trades executed and a good completion rate.

Also, try using the same P2P trader so that you don't attract unwanted attention from the bank.
You won't get any notice from IT department if your transaction is below 5 lakhs.

I still think it is a bad idea if he is avoiding taxes and it might be good for him to pay any tax that he incurs while converting crypto to fiat. What you have mentioned is all good and the right thing to do but we never know how and when the Income tax department finds out about not paying any tax. I have read many users got letters for transactions that were made after 2022 for which they did not file returns.

Yes ofcourse, paying taxes is morally the right thing to do and we should all pay our taxes diligently.
But in such cases where we have accumulated our coins over a period of year it can be tricky to calculate the taxes.
We would not want to pay higher taxes and end up losing half of profits to the government.
The best thing to do here would be to hire a professional CA and get the correct taxes calculated and then pay it.

[vino.gcs]

P2P trading comes with it's own risk and it's not only applicable to India but all the places.
We have already heard cases about bank accounts getting frozen due to P2P trades.
This is one of the reasons why you should avoid trading with strangers especially if your bank account has a huge amount of money.

In this case, you should avoid using father's bank account since it has FDs in it.
You can try P2P trading with your bank account but try to find a reputed P2P trader who has a good amount of trades executed and a good completion rate.

Also, try using the same P2P trader so that you don't attract unwanted attention from the bank.
You won't get any notice from IT department if your transaction is below 5 lakhs.

I still think it is a bad idea if he is avoiding taxes and it might be good for him to pay any tax that he incurs while converting crypto to fiat. What you have mentioned is all good and the right thing to do but we never know how and when the Income tax department finds out about not paying any tax. I have read many users got letters for transactions that were made after 2022 for which they did not file returns.

Yes ofcourse, paying taxes is morally the right thing to do and we should all pay our taxes diligently.
But in such cases where we have accumulated our coins over a period of year it can be tricky to calculate the taxes.
We would not want to pay higher taxes and end up losing half of profits to the government.
The best thing to do here would be to hire a professional CA and get the correct taxes calculated and then pay it.

paying taxes is always the right thing to do but when the state makes you pay more than you have to, it isn't right and that's why we magically forget to pay taxes or try to pay them elsewhere..

[Krishna1942]

One option is directly dealing with persons in currency exchange section but it is risky check their reputation before dealing.
Second You can try binance p2p trading section it is safe and secure. I have exchanged many times but ofcourse small amounts

[pakhitheboss]

One option is directly dealing with persons in currency exchange section but it is risky check their reputation before dealing.
Second You can try binance p2p trading section it is safe and secure. I have exchanged many times but ofcourse small amounts

I haven't made any transaction using Binance P2P and I have read many times on different platforms that have not reported Binance P2P to be safe. I have read that many users using the P2P service have gotten their bank accounts frozen. I am aware that those who were hit hard were the ones who were falling into the trap of scam merchants and sometimes these scammers were the ones who were reporting the bank account to the police of fraud to get their money back. I am hearing for the first time that someone like you has not faced any issues with Binance P2P. I am sure you might be taking all precautions to avoid falling for those crazy offers by scam merchants on that platform.

[M47AK16]

One option is directly dealing with persons in currency exchange section but it is risky check their reputation before dealing.
Second You can try binance p2p trading section it is safe and secure. I have exchanged many times but ofcourse small amounts

Binance P2P is generally safe but only if the merchant avoids adding crypto-related remarks to payments. For complete anonymity, dealing face-to-face with a trusted dealer is a better option. If your transactions come under scrutiny, you may need to report them to the IT department. Having 10L in crypto definitely raises red flags.

If OP is not in the taxable slab than this might complicate things further. Taxation slab starts after 2.5L annual income but OP already has 10L in cryptos so he will definitely be questioned if the transaction goes under scrutiny.
I'll suggest OP to stay cautious and ensure compliance to avoid issues.

[avikz]

Hi everyone,
I have around 10L in USDT and i want to convert it into INR, and i never paid any taxes because i came below the tax slabs. And i don't have enough knowledge about finance and taxation. can you guys please help me how can i convert this crypto to INR without paying taxes?

Can i convert 1Lakh every month? can it be detected?
or what if i send the crypto to my Wazirx and convert 50 thousand every month?

please share ways to convert crypto to INR without paying taxes. the income is savings of 5 years i don't want it be halfed by paying taxes. thanks

Offshore p2p platforms should be able to help here. While I am reluctant to promote any specific name, but you can do your own research. Keep the amount very low and have an interval between two transactions. One lakh a month may put you under the radar so think of something around 20-40k per month.

However, I would not recommend you to avoid taxes at all. It may have repercussions later. So act wisely and consult a CA regarding tax related queries.

[Bitcoin Smith]

Hi everyone,
I have around 10L in USDT and i want to convert it into INR, and i never paid any taxes because i came below the tax slabs. And i don't have enough knowledge about finance and taxation. can you guys please help me how can i convert this crypto to INR without paying taxes?

Can i convert 1Lakh every month? can it be detected?
or what if i send the crypto to my Wazirx and convert 50 thousand every month?

please share ways to convert crypto to INR without paying taxes. the income is savings of 5 years i don't want it be halfed by paying taxes. thanks

Offshore p2p platforms should be able to help here. While I am reluctant to promote any specific name, but you can do your own research. Keep the amount very low and have an interval between two transactions. One lakh a month may put you under the radar so think of something around 20-40k per month.

However, I would not recommend you to avoid taxes at all. It may have repercussions later. So act wisely and consult a CA regarding tax related queries.

Even if he traded 10 one lakh trades and all in a month will not raise any flags in my opinion because IT department will be mostly looking for biggers transfer let's say 5 lakh per TX might raise some flag.

As you said I won't suggest the tax evading but it can be avoided with right strategies like transferring the funds to different user's account like family and relatives that we can trust.

[pakhitheboss]

Even if he traded 10 one lakh trades and all in a month will not raise any flags in my opinion because IT department will be mostly looking for biggers transfer let's say 5 lakh per TX might raise some flag.

As you said I won't suggest the tax evading but it can be avoided with right strategies like transferring the funds to different user's account like family and relatives that we can trust.

Why take the risk? If he gets caught then he will be in a bigger problem than he will be by paying tax. I agree if done correctly he can avoid tax but still it is a big risk in my opinion.

[M47AK16]

As you said I won't suggest the tax evading but it can be avoided with right strategies like transferring the funds to different user's account like family and relatives that we can trust.

This might be a good idea. We can always keep funds diversified in multiple accounts which might be of our family. But we can still pay regular minimum tax amount just to get ITR clear and we can still wager funds using other accounts.

I'm hoping so see local merchants accepting cryptos or helping exchange them. Not in all cities but atleast Tier 1 or Tier 2 cities should implement this. I remember there was a bitcoin ATM here in Bangalore setup by Unocoin but it was closed. The only operational now is in Delhi I guess. Such ATM's are much easier to anonymously convert btc to cash.

[vino.gcs]

As you said I won't suggest the tax evading but it can be avoided with right strategies like transferring the funds to different user's account like family and relatives that we can trust.

This might be a good idea. We can always keep funds diversified in multiple accounts which might be of our family. But we can still pay regular minimum tax amount just to get ITR clear and we can still wager funds using other accounts.

I'm hoping so see local merchants accepting cryptos or helping exchange them. Not in all cities but atleast Tier 1 or Tier 2 cities should implement this. I remember there was a bitcoin ATM here in Bangalore setup by Unocoin but it was closed. The only operational now is in Delhi I guess. Such ATM's are much easier to anonymously convert btc to cash.

I always hope very much that all traders will accept bitcoin for their daily actions always and with all my heart obviously this will happen first in big cities, in small villages it is impossible for it to happen unless first in a big city with a large profit margin

[pakhitheboss]

I always hope very much that all traders will accept bitcoin for their daily actions always and with all my heart obviously this will happen first in big cities, in small villages it is impossible for it to happen unless first in a big city with a large profit margin

I doubt it will ever happen and in case what you are hoping comes true then people will not spend Bitcoin in India. It will become too valuable for anyone to spend their satoshis on buying products. We are Indians we do not sell gold for buying products we ensure that gold remains in the house and we keep on buying more every year. If Indians start investing in Satoshi then for sure Indian households will hold more Bitcoin than other countries or organizations.

[vino.gcs]

I always hope very much that all traders will accept bitcoin for their daily actions always and with all my heart obviously this will happen first in big cities, in small villages it is impossible for it to happen unless first in a big city with a large profit margin

I doubt it will ever happen and in case what you are hoping comes true then people will not spend Bitcoin in India. It will become too valuable for anyone to spend their satoshis on buying products. We are Indians we do not sell gold for buying products we ensure that gold remains in the house and we keep on buying more every year. If Indians start investing in Satoshi then for sure Indian households will hold more Bitcoin than other countries or organizations.

of course I hope that no one actually spends their bitcoins also because in India we really need reserves of value that could really help people who are in economic difficulty and who could find a way of hope with bitcoins

[pakhitheboss]

of course I hope that no one actually spends their bitcoins also because in India we really need reserves of value that could really help people who are in economic difficulty and who could find a way of hope with bitcoins

Bitcoin is no longer the crypto that the Indians are after in 2024. They are after coins/tokens that can make their investment grow by 10x or 50x. That is the reason why India has the second larget investor in meme coins. That is because a large number of investors are students or employees belonging from the middle class who are okay to take a big risk to succeed in this crypto rush. It is similar to what happened early in 2000 and late in 90s when the same middle class were joining MLM companies like Amway.

[Bitcoin Smith]

of course I hope that no one actually spends their bitcoins also because in India we really need reserves of value that could really help people who are in economic difficulty and who could find a way of hope with bitcoins

Bitcoin is no longer the crypto that the Indians are after in 2024. They are after coins/tokens that can make their investment grow by 10x or 50x. That is the reason why India has the second larget investor in meme coins. That is because a large number of investors are students or employees belonging from the middle class who are okay to take a big risk to succeed in this crypto rush. It is similar to what happened early in 2000 and late in 90s when the same middle class were joining MLM companies like Amway.

The terrible thing is they don't even know what is bitcoin or crypto, they watched some youtube videos from tech creators who has no idea what is crypto either suggested some names and we INdians have the habit of believing everything if it's coming from someone popular/celebrity like personal ended up getting into the scheme. I met someone recently who said I am also crypto investor and I asked which exchange you are using to buy bitcoin but his reply was,'What is bitcoin?'

Then I am like how the hell someone claim as crypto investor without even knowing what is bitcoin, then he said he bought some memecoins that is popular with the tap trend.