P2P trading comes with it's own risk and it's not only applicable to India but all the places.
We have already heard cases about bank accounts getting frozen due to P2P trades.
This is one of the reasons why you should avoid trading with strangers especially if your bank account has a huge amount of money.
In this case, you should avoid using father's bank account since it has FDs in it.
You can try P2P trading with your bank account but try to find a reputed P2P trader who has a good amount of trades executed and a good completion rate.
Also, try using the same P2P trader so that you don't attract unwanted attention from the bank.
You won't get any notice from IT department if your transaction is below 5 lakhs.
I still think it is a bad idea if he is avoiding taxes and it might be good for him to pay any tax that he incurs while converting crypto to fiat. What you have mentioned is all good and the right thing to do but we never know how and when the Income tax department finds out about not paying any tax. I have read many users got letters for transactions that were made after 2022 for which they did not file returns.
Yes ofcourse, paying taxes is morally the right thing to do and we should all pay our taxes diligently.
But in such cases where we have accumulated our coins over a period of year it can be tricky to calculate the taxes.
We would not want to pay higher taxes and end up losing half of profits to the government.
The best thing to do here would be to hire a professional CA and get the correct taxes calculated and then pay it.
paying taxes is always the right thing to do but when the state makes you pay more than you have to, it isn't right and that's why we magically forget to pay taxes or try to pay them elsewhere..
