Okay,
So first file NIL returns. You can file it for past 8 financial years. Obviously you need to show the source of Income for that..which can be like tuition fees etc. Easy way to show 250000.
Once you have filed the ITR, you have a legit way telling the Taxman that the source of investing is not from Black money. Solving the AML issue
Now coming to tax thing:
DO NOT save tax by opening account in your family members name. Taxman are very suspicious and they have all the data wrt teach account . al TX details.
So if you substantial amount of profits >>pay tax on it. If you will pay tax you will most likely save yourself from tax scrutiny. However, seeing the notice (one of clients brought to me) it is very likely that they will send it eventually to every1 above INR 5 Lac of initial investment. SO PAY YOUR TAXES
Topic: About Taxes (Read 188 times)
How safe is it to withdraw High Value of BTC at present scenario in India ..? around 5btc.? These are holdings from 2015-2016.. I haven't filed IT return till this date.. not even 0. that's where I'm having problems. ANY Good CA or someone who can give a wise advice on this particular scenario ..? What are the chances that I'll face any notices..? I would like to clear that all of the money that I invested is purely my own. It wasn't much back then around 300$ in DAO that eventually forked into ETH/ETC
If you haven't sold anything for rupees, you have zero tax liability.
Morally Correct answer: sell now and pay capital gains. I-T will most definitely notice the huge payout and possibly scrutinize/buttfuck you. They are brain-dead and on a witchhunt.
Smart answer: Wait out the witchhunt or think about selling it on localbitcoins for cash bit by bit.
Best answer: HODL and cash out years later in a sane country or buy your kid citizenship of a nice tropical island country with BTC
How safe is it to withdraw High Value of BTC at present scenario in India ..? around 5btc.? These are holdings from 2015-2016.. I haven't filed IT return till this date.. not even 0. that's where I'm having problems. ANY Good CA or someone who can give a wise advice on this particular scenario ..? What are the chances that I'll face any notices..? I would like to clear that all of the money that I invested is purely my own. It wasn't much back then around 300$ in DAO that eventually forked into ETH/ETC
As BTC is not considered currency in India, it has to treated like an asset for tax purpose.
When you sell an asset and make a profit, you have to pay capital gains tax on it. The rate differs from asset to asset and also depends on the holding period.
Don't sell the BTC before you hold them for 3 years. That will lower your tax liability.
Just consult a good CA in your city and ask him to file an IT return on your behalf.
Don't show it as "income" else the tax man will get suspicious. A sudden spurt in income can lead to a tax scrutiny.
You will most likely fall in 30% income tax bracket. An option to save tax here is make accounts in name of other family members and transfer some Bitcoins to them. Then take out money in their bank accounts. It will reduce the taxes and if you withdraw til Rs 250000 in one account of a person not falling in taxable income there will be no taxes.
it will be considered as long term capital gain so tax would be minimum. You can even sale it for cash & you are out of the mess easily. Currently since there is no law or provision in Income tax, it will be long procedure to get it cleared.
PM me if you have more questions.
PM me if you have more questions.
How safe is it to withdraw High Value of BTC at present scenario in India ..? around 5btc.? These are holdings from 2015-2016.. I haven't filed IT return till this date.. not even 0. that's where I'm having problems. ANY Good CA or someone who can give a wise advice on this particular scenario ..? What are the chances that I'll face any notices..? I would like to clear that all of the money that I invested is purely my own. It wasn't much back then around 300$ in DAO that eventually forked into ETH/ETC
Just list it as capital gain or direct revenue from software consulting. Pay pre-tax based on estimated income for the year and then cash out. Easy. Whatever extra tax you send, claim refund. Done.
How safe is it to withdraw High Value of BTC at present scenario in India ..? around 5btc.? These are holdings from 2015-2016.. I haven't filed IT return till this date.. not even 0. that's where I'm having problems. ANY Good CA or someone who can give a wise advice on this particular scenario ..? What are the chances that I'll face any notices..? I would like to clear that all of the money that I invested is purely my own. It wasn't much back then around 300$ in DAO that eventually forked into ETH/ETC
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