How to Report Signature Campaign Earnings on ITR Forms?

teosanru

hero member

Activity: 2114

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Quote from: Bureau on June 22, 2023, 09:43:46 AM

Quote from: teosanru on June 15, 2023, 03:22:06 PM

Cleartax might not be 100% right here. Whatever was written was true until 2 years back until the new section on crypto was not bought, now with the new section there is no legal backing on declaring your signature income as salaries. No section says this and no notification says this as well. Point is whenever you sell your crypto to cash you are liable to flat tax under 115BH, there is exception mentioned and no case law saving you so far. Point is if you are stuck in assessment you'll be charged a flat 30% rate unless you are able to convince CIT(A) otherwise in an appeal.

There is nil information as to how file the tax return from crypto. The government is still trying to understand how to milk the middle class that has made crypto as their earning. As per my understanding, meme coins traders are generating more revenue than guys like you. The amount of money these guys are minting by only trading with meme coins is above average. While people like you and me are getting crypto either through campaigns or airdrops. Where as those who made a ton of money are utilizing the hype of a project.

In the end none of us can hide from tax. We would pay it back, wherein I am sure we would be asked to pay flat 30 percent as tax. Still, we have an opportunity so why not utilize it.

If anyone wants to file it this way obviously he/ she has discretion to do so, but as a tax professional it's always my responsibility to guide a person about the risks associated with it. Basic logic is Government would always want you to take up foreign remittances in INR because it makes forex stronger. They will never offer same treatment to remittance received in BTC as that of INR. Also problem is if you are unlucky and you are asked to pay it later, you might even have to pay hefty interest or even penalty of under reporting or mis reporting of income and the sum in total might even be equal to income you earned.

Bureau

sr. member

Activity: 490

Merit: 279

Quote from: teosanru on June 15, 2023, 03:22:06 PM

Cleartax might not be 100% right here. Whatever was written was true until 2 years back until the new section on crypto was not bought, now with the new section there is no legal backing on declaring your signature income as salaries. No section says this and no notification says this as well. Point is whenever you sell your crypto to cash you are liable to flat tax under 115BH, there is exception mentioned and no case law saving you so far. Point is if you are stuck in assessment you'll be charged a flat 30% rate unless you are able to convince CIT(A) otherwise in an appeal.

There is nil information as to how file the tax return from crypto. The government is still trying to understand how to milk the middle class that has made crypto as their earning. As per my understanding, meme coins traders are generating more revenue than guys like you. The amount of money these guys are minting by only trading with meme coins is above average. While people like you and me are getting crypto either through campaigns or airdrops. Where as those who made a ton of money are utilizing the hype of a project.

In the end none of us can hide from tax. We would pay it back, wherein I am sure we would be asked to pay flat 30 percent as tax. Still, we have an opportunity so why not utilize it.

teosanru

hero member

Activity: 2114

Merit: 619

Quote from: Bureau on June 14, 2023, 05:30:51 AM

Many users on the forum have asked how they can show their payments from Bounty or Signature campaigns as earnings from work rather than trade. By using the ITR-3 form, you can report weekly or monthly payments from Signature or Bounty campaigns as salary income.

Depending on your annual income, you will fall under different tax slabs, just like salaried employees. Therefore, you will not incur the flat tax of 30 percent.

Please note that your virtual digital assets should be converted into Indian Rupees (INR) on the date of payment. If their fair market value changed after receiving them, they will be categorized as capital gains.

Thanks.

Cleartax might not be 100% right here. Whatever was written was true until 2 years back until the new section on crypto was not bought, now with the new section there is no legal backing on declaring your signature income as salaries. No section says this and no notification says this as well. Point is whenever you sell your crypto to cash you are liable to flat tax under 115BH, there is exception mentioned and no case law saving you so far. Point is if you are stuck in assessment you'll be charged a flat 30% rate unless you are able to convince CIT(A) otherwise in an appeal.

elevates

sr. member

Activity: 756

Merit: 390

Nothing new! We already know how to work out our earnings from Signature Campaign with the Indian tax system. I also believe that after the first cryptocurrency tax submission, our tax department would become complacent for the next year if your transaction is within 10 lacs. I might be speculating here, but that was happening in the past for every business. As the law is so complicated I am sure the government would ask for 30 percent in tax after submitting the ITR with a penalty as it is India.

Bureau

sr. member

Activity: 490

Merit: 279

Many users on the forum have asked how they can show their payments from Bounty or Signature campaigns as earnings from work rather than trade. By using the ITR-3 form, you can report weekly or monthly payments from Signature or Bounty campaigns as salary income.

Depending on your annual income, you will fall under different tax slabs, just like salaried employees. Therefore, you will not incur the flat tax of 30 percent.

Please note that your virtual digital assets should be converted into Indian Rupees (INR) on the date of payment. If their fair market value changed after receiving them, they will be categorized as capital gains.

Thanks.

Topic: How to Report Signature Campaign Earnings on ITR Forms? (Read 97 times)