Topic: Can we avoid tax on crypto trading in india - page 2. (Read 284 times)
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.
You only can be tax-free if you secure privacy and anonymity well. If you leak information, traces of your Bitcoin & cryptocurrency investments, on chain transactions together with your identity, you can not avoid tax.
If tax authority detects it, later you will be charged costly extra tax and fine fee because of your tax violation. If you are not feasible to pay it when they found you, charged you, you even can be put into jails.
Avoid centralized exchanges and KYC if you want to be tax-free. There are decentralized exchanges for you to use and they are good for privacy, anonymity as well as tax.
https://kycnot.me/
If tax authority detects it, later you will be charged costly extra tax and fine fee because of your tax violation. If you are not feasible to pay it when they found you, charged you, you even can be put into jails.
Avoid centralized exchanges and KYC if you want to be tax-free. There are decentralized exchanges for you to use and they are good for privacy, anonymity as well as tax.
https://kycnot.me/
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
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
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.
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
You will have to talk with a tax lawyer or an accountant to know what it needs to be done as the laws of each country are different, and unless there is someone on the forum on the same situation it is unlikely we can be of much help, now must of the time laws have all kind of backdoors and ambiguous language which can be exploited, and if you consult with a tax lawyer they could help you to find legal ways to reduce the taxes you need to pay, but if you do not want to do this you are left with very narrow options, like moving out of India to a country that has no trading tax. 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
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.
if government ask for less tax we could have pay happily bus 30% tax is alot.
Until the latest information (as of June 6, 2023) that I read[1], tax on Bitcoin is not (yet) specifically regulated. I think there are many loopholes there, for example trading offline and/or not involving local currency. This at least reduces the tax rate to lower than 30%.1. https://cleartax.in/s/bitcoins-taxes-india
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?
In any case, try not to use CEX if taxes are imposed on all profits from all Bitcoin transactions, including profits from selling altcoins.
No matter of the exchange used, whether it's a decentralized exchange (DEX) or a centralized exchange (CEX), if ultimately converting crypto to local Indian fiat involves an exchange registered by the government, taxes cannot to avoid. A 30% tax rate is a big money, and I assume it's on the profit, not the transaction amount. Shouldn't you be able to freely ignore this tax system if you're not making a profit?And if the current regulations aren't providing any advantages for crypto adopter in India, just wait for the next set of regulations. Governments or bank typically move swiftly to ensure fairness for both crypto users and the government itself without underestimate some their ecosystem. This allows for a balanced law as the crypto market evolves in India.
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.
If the tax is calculated on local currency transactions, it is better to reduce the sale transactions in the local currency to one transaction so that you buy Bitcoin on today’s date and convert to stable currencies when the price of Bitcoin rises and buy Bitcoin again when it decreases with a 30% sale in the local currency. Therefore, you have paid a tax on 30%. % and increased your Bitcoin holding.
If the taxes are for all transactions, it is better to use a DEX such as BISQ, and then reduce the sale of stable currencies and keep a record.
In any case, try not to use CEX if taxes are imposed on all profits from all Bitcoin transactions, including profits from selling altcoins.
If the taxes are for all transactions, it is better to use a DEX such as BISQ, and then reduce the sale of stable currencies and keep a record.
In any case, try not to use CEX if taxes are imposed on all profits from all Bitcoin transactions, including profits from selling altcoins.
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
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.Please help I am unable to find any way through out internet and really wanted to start the crypto journey
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 can't avoid it as long as you are still an Indian citizen because it means you have to obey all the rules of that country and every violation has a penalty.
If you feel reluctant to pay taxes from your crypto trading activities, then move to another country that does not apply this, but if it is not possible to move, then there is no need to carry out crypto trading.
In fact, trading is not an activity that will provide certainty of profit, many end up experiencing losses. So actually you are afraid of taxes for activities that don't necessarily provide a profit for you, maybe you will even stop trading before you can make a profit because trading is not as easy as you imagine.
If you feel reluctant to pay taxes from your crypto trading activities, then move to another country that does not apply this, but if it is not possible to move, then there is no need to carry out crypto trading.
In fact, trading is not an activity that will provide certainty of profit, many end up experiencing losses. So actually you are afraid of taxes for activities that don't necessarily provide a profit for you, maybe you will even stop trading before you can make a profit because trading is not as easy as you imagine.
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/
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/
So there are two things, avoiding tax, and then evading tax. One is acceptable in some places, the other is a crime and can make you end up in prison. If you want to avoid your Country tax. Then it's better you move to another country where they don't pay crypto tax (there are still many of them) become a citizen there, set up your accounts and start happily trading.
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
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
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