Topic: Bank Transfer in India ( Questions ) (Read 901 times)

Do's:
You need to have your statements ready and show them that you sold your bitcoins and got your cash, but those bitcoins should not have come through any illegal means or ways. If it's black money, then it's better you should redeem very small amounts in your banks so to stay safe.
Always remain safe by checking buyers' ID proof before going ahead.

Don'ts:
If you are still in Thailand, then I don't think you should have any problems because if you are there, I think that you will need to comply with their rules and not India. That's what I wanted to ask, that why don't you withdraw your cash in Thailand bank account itself if you are there?
Don't sell anyone who are willing to give you old notes of 500 and 1000 under any circumstances.

I say wait for some time to make the transaction in bitcoin-bank account.as government is taking step to get hold of black money holder and they start doubting that these black money are now converted by bitcoin.you can use international bank for these transactions for mean while.

since you are an NRI you should not worry about income tax if you open up an NRI account in your bank and you are depositing in that account other than that you have to file the returns and hope this clears your doubt.People are confused with what black money is all about ,you are exchanging the coins through bank transfer and that negates the use of black money.

Hacked/stolen funds could be the funds that have been transferred to the hackers account or your account directly. This can happen when users either share their OTP or passwords over the phone or via emails or when their debit/credit cards are stolen. We often know about netbanking accounts being hacked and in such cases when you (or the receiver) gets those funds without knowing that the funds are stolen, the receiver can face major issues.


In some cases, people even forge signatures and hence cheques/demand drafts/cash (which can be withdrawn from stolen debit cards or robbed) are also risky when trading with unknown users.

hacked funds simply those who hack other's Bank account via lets say social engineering fraud / Remote administration Trojan and then use those funds to transfer to others . When original owner detects his/her loss then he/she reports to his bank and bank does freeze that account and reverse all the payment made through it and the receivers may get call from Bank or cyber crime department for questioning ..

First question yes you have to pay Income tax when you deal such amount in every month , it will obviously trigger income tax department to look into your transactions . They will ask you about it and source of income for this much heavy transactions and also your bank will also ask about it . BTC is neither legal nor illegal at this point in India . Govt. didnt approved it officially also they didn't implemented any rules about it too . But when you deal such amount FIAT INR in your bank you raise questions for sure and to know in depth about it you have to consult with a good CA / TAX LAWYER . As far Benson Samuel told me that it may need to file as Capital gains income for now until GOVT. implement any rule for it . Proper way to do it get yourself Current account register an individual Propitiatory firm/Partnership Firm and discuss with a good Tax lawyer / CA about it .

Second question , i don't think people can put black money into their bank and transfer IMPS for buy btc due to strict inquiry in place now in India but still its risky and yes its not impossible too .. for example let say a user divided his black money among many people's bank account and then those people trade in LBC for BTC then its impossible to detect them but if IT dept. catchs the culprit and seize his bank account then i don't know surely but it can reverse the payments linked with Black money and as you receive you may be called for questioning regarding relation with that user . I repeat i am not sure about this totally may be some more Pro traders shade light on this matter here , but yes there is still risk involved to deal at this moment , Also Do not receive CASH DEPOSITS at this moment cause that can risk direct involvement of black money to your account and may cause future issue . Safest thing to do in LBC right now face to face deals .. get Cash in hand new notes and exchange BTC with customer .

  cud you explain more  about hacked funds?

may be this will b  helpful 4 u (DIGITAL PAYMENTS VISION IN INDIA & BLOCKCHAIN REGULATIONS )   ----->   https://bitcointalksearch.org/topic/ico-crowdfunding-fintechs-blockchain-regulations-india-1674103

Oh very nice advice.I never thought that bank transfer could also be hacked.

If you find the answer to my question then let me know. My question is still unsolved.
Can any Indian Pro Trader answer it?

Good points .. be careful when you deal in LBC .. and if you want to check horrific examples then check here >> https://bitcointalksearch.org/topic/indian-localbitcoins-scammer-list-598776
If you wanna trade for Bank in LBC then i suggest mark your ad for only Verified and Name verified users to contact you . Also if you notice any suspicious movement from your customer ask ID proof . Do not accept third party transfers ever .. Also as per Govt. inquiry i am also curious about the questions you asked , I am also not sure how to pay TAX etc .. but i guess the trade of big FIAT currency will attract tax for sure , so i guess you should consult with a professional CA regarding this matter , i am also searching for a good CA who is experience in this matter .. Some of my friends do BTC Trade with huge amounts and they has their personal CA to maintain filling tax and returns so i guess there is of course a way to file tax in India for this .

You will have to pay income tax if you receive above 2.5 lakhs per year in the form of salary or any other income sources. Also, if you trade such big amounts, they might ask you the source of income and other questions to check if it's legal and allowed.


Never trade with users on LBC for INR as most of them are fraudsters and send hacked funds. You might lose all that money as BTC is not reversible while any form of INR is. People who have received such hacked money get into trouble and their bank account gets freezed.

I dint understood what type of solution are you providing to him. Is that you liked the name so much that you trying to puzzle him from the finding the solution from the name itself or is he your friend and juts trolling here around?

get some Chivas Regal 12 and think bro u ll find a solution for this 

I Just came to know that India has banned ₹ 500 & ₹ 1000 denominations. I am very happy that BJP government is taking such good steps.

My question is that if i cash out around 10 BTC ~ ₹6-₹7 Lakhs every month in my account by trading BTC then will i have to pay income tax? will Income tax people jail me? Am i doing illegal thing? I have been living in Thailand and there is no such problem.

I am very much confused , i trade BTC for ₹ on Localbitcoins and i accept Immediate Payment Service (IMPS), so there is chance that some people may be using black money to buy BTC and in that case if i sell them then i will come under suspicion? Any one here who knows , what are Do's and Dont's?

Is my way of cashing out is money laundering?

This is very serious problem.