It seems you already got enough answer in the main discussion board?
We don't have regulations for cryptos in India so all the profits made from cryptos either by holding or trading is taxable.
Topic: Does any one file taxes on bitcoin or any other crypto in india (Read 165 times)
for example if i buy some alt coins like 1000 for $200 and hodl for 1 week.
and if i sell the alt coins 1000 for $500 for profit after 1 week.
Does i belong to trader.......? or investor please explain.
It differs depending on where you bought and sold and let us take two examples to explain it:and if i sell the alt coins 1000 for $500 for profit after 1 week.
Does i belong to trader.......? or investor please explain.
First example: An explanation of how taxes are calculated on profits:
Suppose, for example, that you bought 1 Bitcoin at a price of 10,000 dollars and an exchange rate of $1 = ₹90 >> ₹900,000.
Now you sold at $ 11,000 and nd an exchange rate of $1 = ₹95 >>> ₹1,045,000.
So the part that will be taxed is ₹1,045,000 - ₹900,000 = ₹145,000
as it is considered a capital gain profit.
Second example: You are buying/selling altcoins using anonymous platforms:
In this case, since you do not send any of your personal data, all transactions are not considered taxable and therefore there is no need to report it. The part that will be subject to taxes when you make the final withdrawal and transfer to the local currency.
Third example: You are conducting exchanges using a central platform:
Here the situation is a little complicated:
All transfers that you make will be subject to what happened in the first example and therefore you must calculate it and the profits you get will be subject to the capital tax.
I hope it becomes clear.
For more and source Read here ----> https://bitcointalksearch.org/topic/m.54447056
There is no legal/illegal legislation in India so you do not have to pay a tax on bitcoin as long as you store that amount in the form of Bitcoins and do not transfer it to Indian Rupee.
Whenever you convert your crypto to Indian Rupee and make some profit/income, you must pay taxes (According to Income tax.)
Since you are an investor and you process the transfer or withdrawal to your account once or several times during the financial year, you will benefit from Section 44ADA of Income Tax, So you don't have to keep any record. Just think about the total receipts and pay the tax at least 50% of the receipts.
you can read this example for more:
Source and more info ----> https://bitcointalksearch.org/topic/guide-how-bitcoin-and-cryptocurrencies-are-taxed-in-india-5206607
Whenever you convert your crypto to Indian Rupee and make some profit/income, you must pay taxes (According to Income tax.)
Since you are an investor and you process the transfer or withdrawal to your account once or several times during the financial year, you will benefit from Section 44ADA of Income Tax, So you don't have to keep any record. Just think about the total receipts and pay the tax at least 50% of the receipts.
you can read this example for more:
Quote
Example: I withdrew Rs. 10,00,000 during the financial year in my bank. Then I will show Rs. 10,00,000 as receipts from my consultancy business. As per Section 44ADA, I have to show my profits to be Rs. 5,00,000 or more (52-55% recommended), let say I show profit to be Rs. 5,20,000. Then I have to pay tax on Rs. 5,20,000 which will be around Rs. 14,000 or zero if I claim deductions of Rs. 20,000 or more (such as LIC premium paid, etc.).
Source and more info ----> https://bitcointalksearch.org/topic/guide-how-bitcoin-and-cryptocurrencies-are-taxed-in-india-5206607
Thanks!
Buying and selling also come to trading.
for example if i buy some alt coins like 1000 for $200 and hodl for 1 week.
and if i sell the alt coins 1000 for $500 for profit after 1 week.
Does i belong to trader.......? or investor please explain.
I want to invest in altcoins for example i want to buy eth and later after 1week i convert to another alt coins does i belong to investor or trader.
Does investor and trader have to file separate taxes in income tax or only when you convert to INR only i should pay the taxes for the converted INR transactions.....?
There is no legal/illegal legislation in India so you do not have to pay a tax on bitcoin as long as you store that amount in the form of Bitcoins and do not transfer it to Indian Rupee.
Whenever you convert your crypto to Indian Rupee and make some profit/income, you must pay taxes (According to Income tax.)
Since you are an investor and you process the transfer or withdrawal to your account once or several times during the financial year, you will benefit from Section 44ADA of Income Tax, So you don't have to keep any record. Just think about the total receipts and pay the tax at least 50% of the receipts.
you can read this example for more:
Source and more info ----> https://bitcointalksearch.org/topic/guide-how-bitcoin-and-cryptocurrencies-are-taxed-in-india-5206607
Whenever you convert your crypto to Indian Rupee and make some profit/income, you must pay taxes (According to Income tax.)
Since you are an investor and you process the transfer or withdrawal to your account once or several times during the financial year, you will benefit from Section 44ADA of Income Tax, So you don't have to keep any record. Just think about the total receipts and pay the tax at least 50% of the receipts.
you can read this example for more:
Quote
Example: I withdrew Rs. 10,00,000 during the financial year in my bank. Then I will show Rs. 10,00,000 as receipts from my consultancy business. As per Section 44ADA, I have to show my profits to be Rs. 5,00,000 or more (52-55% recommended), let say I show profit to be Rs. 5,20,000. Then I have to pay tax on Rs. 5,20,000 which will be around Rs. 14,000 or zero if I claim deductions of Rs. 20,000 or more (such as LIC premium paid, etc.).
Source and more info ----> https://bitcointalksearch.org/topic/guide-how-bitcoin-and-cryptocurrencies-are-taxed-in-india-5206607
First of all, you're better off to get answers if you move this our of Indian Marketplace and to Local sub-forum India.
A trader is someone who trades crypto, similar to Sharemarket. You can trade crypto from BTC to USD/INR?... or to any altcoin for Profit/loss, margin,option,future.
you're invested and holding crypto and hence it should come under Investor and will be treated under normal short term and long term gains.
You need to show them under tax similar to how you show other assets. File them under Investment for the Fiscal year of Purchase.
A trader is someone who trades crypto, similar to Sharemarket. You can trade crypto from BTC to USD/INR?... or to any altcoin for Profit/loss, margin,option,future.
you're invested and holding crypto and hence it should come under Investor and will be treated under normal short term and long term gains.
You need to show them under tax similar to how you show other assets. File them under Investment for the Fiscal year of Purchase.
Hello!
I came to know bitcoins come into long term or short term capital gains.
I'am invester not trader.
Does any one pay taxes i mean filed returns for bitcoins.........?
And also please explain the different between investor and trader i mean i hold crypto so iam investor who is trader........?
Thanks!
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