are exchanges using this loop hole to evade taxes? 🕳️🧩

[IIrik11]

i was reading up on bitcoin/crypto tax because i needed some clarity to file some tax (not mine) & i ended up on an article,, started reading it up

& then i saw a portion of that article which i found to be really interesting and i think i found a loop hole that exchanges in india or maybe worldwide

might be using to evade tax and this is what im talking about:

Lost or Stolen Crypto in India: What You Need to Know

The Income Tax Department (ITD) has not provided specific guidance on how lost or stolen crypto is treated. However, based on precedents from Indian court rulings regarding the loss or theft of other types of assets, you likely won’t be required to pay tax on crypto that has been lost due to a hack, scam, or theft.

sauce: http://www.indiafilings.com/learn/crypto-tax-in-india-taxation-on-cryptocurrency/

just read the bolded text in above snippet & tell me this isn't what all exchanges r doing? 

this is sort of like their 'endgame'  keep it running,, keep collecting crypto,, because there is no tax on holding bitcoin/crypto and when the time comes yell!!

--hacked-- n safely transfer ur holdings to new address/s,, move out of the country or don't,, & u don't have to pay anything because u were a victim of an online theft/hack

tell me this isn't possible? 

[Bitcoin Smith]

Possible but if they took that route then they are just ditching a golden egg goose for one time benefit, the market in India is going to get wider so if Indian exchanges offers the better services then users might end up using them more than others that is going to make their worth in billions for sure.

BTW deadline for tax reporting passed already.

[pawanjain]

--hacked-- n safely transfer ur holdings to new address/s,, move out of the country or don't,, & u don't have to pay anything because u were a victim of an online theft/hack

tell me this isn't possible? 

snip

This seems a little weird. Alright, I get that if the funds are lost you don't have to pay tax for it but then how would you get it to your bank account ?
The only way I see it a working method is if havala is involved and you get cash in return for your coins.
But if you are hold a large amount of coins, wouldn't it be difficult to get that much amount of cash.
The issue would still persist and you won't be able to get the money in your bank account when needed.

[M47AK16]

this is sort of like their 'endgame'  keep it running,, keep collecting crypto,, because there is no tax on holding bitcoin/crypto and when the time comes yell!!

--hacked-- n safely transfer ur holdings to new address/s,, move out of the country or don't,, & u don't have to pay anything because u were a victim of an online theft/hack

tell me this isn't possible? 

Surely this can be possible but this would also ruin the exchange's reputation, right? This will be a one time scam where they can simply exit the markets and run away with all the money claiming it was hacked.

While reading your post, I started thinking about Wazirx. Really believe this is not the case with them as I really loved that exchange. That was the first exchange where I started using P2P and it was really helpful for me as I used to make some sidemoney daily buy buying and selling USDT. I might still have some funds on WazirX but I left thinking those when they got hacked. Now I just try to go through the emails they send about updates on the lawsuit.

[Bitcoin Smith]

While reading your post, I started thinking about Wazirx. Really believe this is not the case with them as I really loved that exchange. That was the first exchange where I started using P2P and it was really helpful for me as I used to make some sidemoney daily buy buying and selling USDT.

I would love to bring back wazirx for one primary reason because they had BTC/INR pair and almost offered the similar rate of Binance that is why they have grown so big and then crashed hard. I stopped following about wazirx for a while because their chance of revival is very slim and even if they come back again I doubt the users will keep trusting them.

If you had your wazirx app then check if the withdrawal is enabled, they had it enabled for a while and allowing 2/3rd of wallet balance to withdraw.

[pawanjain]

If you had your wazirx app then check if the withdrawal is enabled, they had it enabled for a while and allowing 2/3rd of wallet balance to withdraw.

Is this really true ? When was this if you could remember ?
The last time I checked around 2-3 months back the withdrawals as well as trading were all disabled.
One of my friends has around 30k INR worth coins stuck in there and I have been following their email updates.
Although they are actively trying to start their operations back it might still take a long time for it to actually happen.

[Bitcoin Smith]

If you had your wazirx app then check if the withdrawal is enabled, they had it enabled for a while and allowing 2/3rd of wallet balance to withdraw.

Is this really true ? When was this if you could remember ?
The last time I checked around 2-3 months back the withdrawals as well as trading were all disabled.
One of my friends has around 30k INR worth coins stuck in there and I have been following their email updates.
Although they are actively trying to start their operations back it might still take a long time for it to actually happen.

You could have withdrawn 20K which is 66% of 30K and the remaining will be stuck in there forever. I don't remember they had any deadline for that 2/3rd of withdrawal which is why I suggested seeing if there is any way to request for that allowed amount to withdraw from the total wallet balance. I am not having any balance at all, it's like around 10INR which is why I can't verify the details whether the withdrawal is enabled or not.

[pawanjain]

If you had your wazirx app then check if the withdrawal is enabled, they had it enabled for a while and allowing 2/3rd of wallet balance to withdraw.

Is this really true ? When was this if you could remember ?
The last time I checked around 2-3 months back the withdrawals as well as trading were all disabled.
One of my friends has around 30k INR worth coins stuck in there and I have been following their email updates.
Although they are actively trying to start their operations back it might still take a long time for it to actually happen.

You could have withdrawn 20K which is 66% of 30K and the remaining will be stuck in there forever. I don't remember they had any deadline for that 2/3rd of withdrawal which is why I suggested seeing if there is any way to request for that allowed amount to withdraw from the total wallet balance. I am not having any balance at all, it's like around 10INR which is why I can't verify the details whether the withdrawal is enabled or not.

Do you have the source to that news ?
I just went through their twitter page and followed all their posts since January and didn't get any such news.
But yeah, there is a proposed scheme that will enable all the creditors to receive 85% of their money back if the Singapore court grants WazirX the required approval.
So far, the hearings are still going on without any final conclusion and only after the approval all the creditors will received 85% of their money back.

[Bitcoin Smith]

~
Do you have the source to that news ?
I just went through their twitter page and followed all their posts since January and didn't get any such news.

If I am not wrong this announcement came in the back end of 2024 itself and here is the official announcement from the wazirx

starting from 26 August 2024 (next Monday), all eligible users with INR balances will be able to withdraw up to ~66% of their INR balances as reflected on the WazirX platform in phases:

• From 26 August – 8 September 2024, users will be able to withdraw up to half of the present ~66% limit of their INR balances; and
• From 9 – 22 September 2024, users will be able to withdraw up to the full ~66% limit of their INR balances.

Important Announcement About INR Withdrawals and Crypto Next Steps

And I guess this only applies to the INR balance not the whole wallet balance so if your friend kept the crypto in wazirx account then he may not be eligible until wazirx finds a leghal solution.

[pawanjain]

~
Do you have the source to that news ?
I just went through their twitter page and followed all their posts since January and didn't get any such news.

If I am not wrong this announcement came in the back end of 2024 itself and here is the official announcement from the wazirx

starting from 26 August 2024 (next Monday), all eligible users with INR balances will be able to withdraw up to ~66% of their INR balances as reflected on the WazirX platform in phases:

• From 26 August – 8 September 2024, users will be able to withdraw up to half of the present ~66% limit of their INR balances; and
• From 9 – 22 September 2024, users will be able to withdraw up to the full ~66% limit of their INR balances.

Important Announcement About INR Withdrawals and Crypto Next Steps

And I guess this only applies to the INR balance not the whole wallet balance so if your friend kept the crypto in wazirx account then he may not be eligible until wazirx finds a leghal solution.

Alright, so this was in the year 2024 and that's why I didn't get this news in their feed.
My friend was holding crypto assets and since this was only applicable to INR he would have not able to withdraw the amount anyways.
So bad luck for him but lets hope for the positive and I wish that they get the required approvals from the Singapore court.