Can we avoid tax on crypto trading in india

avikz

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Quote from: kentrolla on December 17, 2023, 05:44:31 AM

Quote from: avikz on December 14, 2023, 02:54:06 PM

Quote from: Mynameis123 on November 23, 2023, 03:11:50 PM

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

I would not suggest you to avoid tax unless you want to get into legal troubles. The only way to avoid tax is to trade your Bitcoin for cash. But in reality it is extremely difficult to find a trustworth be trader who would do that for you. Also if you want to trade smaller amounts then cash trading might be beneficial for you. But for big amounts, cast trading is not at all recommended.

So instead of finding other route to avoid tax, try to pay it and stand at the right side with the law.

I understand the consequence of avoiding tax but If you are in India and pay 30% tax and 1% TDS on every single trade then no one would be able to make even a single penny but rather end up paying taxes without any income. Indian government has just killed crypto industry in India and Indian exchanges as well.

That is correct! That's exactly what the Indian government wants. They honestly want to kill the crypto ecosystem in India. But instead of cracking down like US, they are simply taking a wiser route where they will effectively discourage people to invest in cryptos and fill their own coffers at the same time! A typical Indian brain.

But I would not suggest you to avoid taxes at any point of time. You really do not want to get in to legal troubles in India.

elevates

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Quote from: kentrolla on December 17, 2023, 05:44:31 AM

I understand the consequence of avoiding tax but If you are in India and pay 30% tax and 1% TDS on every single trade then no one would be able to make even a single penny but rather end up paying taxes without any income. Indian government has just killed crypto industry in India and Indian exchanges as well.

If you trade on Indian exchange, you have to pay tax and TDS as they have to report every transaction to the government. Use an International exchange which do not require KYC for trading, you do not need to pay TDS. Then transfer your profit to an Indian exchange to sell your profit on the same day, you would be paying TDS on conversion to INR. You won't be paying any tax as it is only applicable on profit gained, try not to exceed transaction above INR 10 lac.

kentrolla

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Quote from: avikz on December 14, 2023, 02:54:06 PM

Quote from: Mynameis123 on November 23, 2023, 03:11:50 PM

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

I would not suggest you to avoid tax unless you want to get into legal troubles. The only way to avoid tax is to trade your Bitcoin for cash. But in reality it is extremely difficult to find a trustworth be trader who would do that for you. Also if you want to trade smaller amounts then cash trading might be beneficial for you. But for big amounts, cast trading is not at all recommended.

So instead of finding other route to avoid tax, try to pay it and stand at the right side with the law.

I understand the consequence of avoiding tax but If you are in India and pay 30% tax and 1% TDS on every single trade then no one would be able to make even a single penny but rather end up paying taxes without any income. Indian government has just killed crypto industry in India and Indian exchanges as well.

avikz

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Quote from: Mynameis123 on November 23, 2023, 03:11:50 PM

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

I would not suggest you to avoid tax unless you want to get into legal troubles. The only way to avoid tax is to trade your Bitcoin for cash. But in reality it is extremely difficult to find a trustworth be trader who would do that for you. Also if you want to trade smaller amounts then cash trading might be beneficial for you. But for big amounts, cast trading is not at all recommended.

So instead of finding other route to avoid tax, try to pay it and stand at the right side with the law.

Bitcoin Smith

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Quote from: TheUltraElite on November 24, 2023, 12:46:13 PM

You cant "avoid" taxation and sleep soundly at night.

Quote from: Bureau on November 24, 2023, 09:12:25 AM

Why avoid tax? Why take unnecessary risks? Pay tax and be safe from the law.

Avoiding the tax is not an actual violation of laws but evading is, almost every rich person in India knows how to avoid the taxes and that is how they can preserve their earnings/profits to themselves.

But in crypto avoiding tax is legally not possible unless we come under the 5 lakh per annum slab even for that we need to report the income and get the 12,500 claim back.

TheUltraElite

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You cant "avoid" taxation and sleep soundly at night.

I am currently not exchanging BTC to INR for this humongous taxation but growing my stash gradually from different sources, with hopes that the government might do something more "civilized" in the future.

Have you tried P2P trading? It is risky for sure, but you can trade in smaller volumes every month to gradually convert the BTC to INR.

Bureau

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Why avoid tax? Why take unnecessary risks? Pay tax and be safe from the law. The only problem with trading is the unjustified 1% TDS, avoid it by using DEX as they cannot have your identity. I personally won't recommend anyone evading the tax, it only helps the government in carrying out development projects. I know some of you would say it is like squeezing the middle class, I agree it is but that is what every country does to make the life of every citizen good.

If you want to evade tax on Indian exchanges then sell your crypto on the same day for INR. They cannot trace the source if you are using your personal wallet to send crypto to an Indian exchange. There is a loophole, wherein if you do not get any gains with your cryptocurrency then you do not fall into that tax slab. If you are KYC verified and do not trade on Indian exchange but use it for converting crypto to INR then you won't get taxed.

What you need to do is to sell your crypto for INR on the same day. You would need to use your personal wallet in order to do it. If you transfer funds from an exchange wallet to another exchange wallet then you would get caught. If possible use coins that are meant for privacy.

Bitcoin Smith

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You can avoid paying that 30% of tax by keeping your income less than 5 lacs per annum and that is the only way to avoid paying the taxes legally in India but if you use p2p exchange then you no need to report the income under crypto profits but you need to have some other sources to cover up that amount like business or something and its not possible for salaried person via corporates.

Using international exchange seems like a good option but still its centralized regulated platform so we never know when they will share the data with our government so I will not take that risk.

pakhitheboss

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If you trade on International exchanges like Kucoin and Binance you could avoid the 1% TDS. The government can ask for data of Indian users from them but it won't be easy for them to procure from International exchange. The best option for traders is to use DEX like UNISWAP, Pancakeswap, and 1Inch. Almost every Indian trader is now using these dexes for trading. The DEX does not gather user data as you need to only connect your wallet while making a trade.

Now every time you convert your cryptocurrency to INR you are bound to pay taxes on your profit. If you convert your cryptocurrency on a P2P exchange to INR then the government won't be able to find it out unless you make a big trade of 1 lac or more in a month. Still, the risk is very high and if you want to take that risk then do not pay any taxes but if you want to lead a simple life then pay the 30 percent tax if applicable.

kentrolla

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I guess the TDS of 1% applies for every single trade you make, whenever you buy, sell or swap. There is no way of escaping the government of you continue to use Indian Crypto exchanges likes Kuber Coinswitch, CoinDCX, WaxirZ, Etc as here when you trade the amount you get is post deduction of 1% TDS. I would suggest to go ahead with renowned international exchange like Binance as I don't think they share your data with government. But you need to be cautious while withdrawing the amount, I was in such situations and preferred OTC.

Mynameis123

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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

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