Topic: Tax (how?) on earnings from BTC trading on LBC? (Read 855 times)

Quote from: deadley on March 06, 2017, 11:09:00 AM

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

I'm afraid, that's not the case in current scenario. I've had a word with 'Yes' bank and the guy said that he needs TIN number to open a current account. Moreover; he said that other banks will also require TIN number to open a current account. It's not possible to open it without a TIN number.

I have current account without TIN. They just need proprietorship deed, partnership deed or company registration document.
No bank ever asked me for TIN number. Even if you are only service provider then you don't need TIN then you need service tax number.

Every business don't required TIN to run business.

I agree, TIN is not a requirement at all. He may have asked you by wrong assumption.

Also @Deadley Bro, my account activity on SBI and AXIS have been really high by normal standards, like 3 - 4 times a day, average turnaround around 10k per week some weeks are less than others. This involved receiving payments for various freelancer services that I do (which you know of) plus personal transactions. Had the SBI since 2004 and Axis since 2010. Havent had my account frozen.

Although I do know if the number of transactions and volumes reach a certain level they will freeze your account but myself being a freelancer since 2009 have never hit that level. And in this time I have been a pretty active trader in between 2012 and 2014.

That is why I said "really high volumes" - which would be your case.

He was talking about 27 lakh per month, saving account not for regular transaction of commercial thing. That is why we need current account for that.

legendster

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www.V.systems

Quote from: Nam3 on March 06, 2017, 10:58:37 AM

Quote from: Nam3 on March 06, 2017, 10:58:37 AM

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

I'm afraid, that's not the case in current scenario. I've had a word with 'Yes' bank and the guy said that he needs TIN number to open a current account. Moreover; he said that other banks will also require TIN number to open a current account. It's not possible to open it without a TIN number.

I have current account without TIN. They just need proprietorship deed, partnership deed or company registration document.
No bank ever asked me for TIN number. Even if you are only service provider then you don't need TIN then you need service tax number.

Every business don't required TIN to run business.

I agree, TIN is not a requirement at all. He may have asked you by wrong assumption.

Also @Deadley Bro, my account activity on SBI and AXIS have been really high by normal standards, like 3 - 4 times a day, average turnaround around 10k per week some weeks are less than others. This involved receiving payments for various freelancer services that I do (which you know of) plus personal transactions. Had the SBI since 2004 and Axis since 2010. Havent had my account frozen.

Although I do know if the number of transactions and volumes reach a certain level they will freeze your account but myself being a freelancer since 2009 have never hit that level. And in this time I have been a pretty active trader in between 2012 and 2014.

That is why I said "really high volumes" - which would be your case.

deadley

legendary

Activity: 2562

Merit: 1064

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

I'm afraid, that's not the case in current scenario. I've had a word with 'Yes' bank and the guy said that he needs TIN number to open a current account. Moreover; he said that other banks will also require TIN number to open a current account. It's not possible to open it without a TIN number.

I have current account without TIN. They just need proprietorship deed, partnership deed or company registration document.
No bank ever asked me for TIN number. Even if you are only service provider then you don't need TIN then you need service tax number.

Every business don't required TIN to run business.

Nam3

full member

Activity: 173

Merit: 100

Quote from: susila_bai on March 06, 2017, 03:14:00 AM

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

I'm afraid, that's not the case in current scenario. I've had a word with 'Yes' bank and the guy said that he needs TIN number to open a current account. Moreover; he said that other banks will also require TIN number to open a current account. It's not possible to open it without a TIN number.

It is not required to open firm/business account you can open individual current account and do the transaction in it, and you can show the transaction under short term profit or else you can show the details just like what you are showing when trading in Equity in share market.

Currently, no banks are allowing to open an individual current account. Maybe that's a possibility in the past, but not anymore.

Frankly speaking the laws here are nothing more than a BIG headache. I've been to several tax consultants and most of them had no idea about BTC or what BTC trading is. I can't just say that I'll be trading demat or something, because then I won't be able to show proof of income at the end of year.

I've a feeling I need a tax consultant who know BTC in and out. Depressed Cry

deadley

legendary

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Quote from: legendster on March 06, 2017, 07:04:56 AM

Calculate your total annual earning and pay tax for that. That's it.

Doesn't matter how you earned. You are earning from trading, doesn't matter it's BTC or something else.

Makes sense, but do I need a current account or shall I keep trading using my savings bank account? If I'm suppose to get a current account, I need to show a firm/business (TIN number). I'm just not sure how to go about doing this step. How do you guys handle it?

No need for current account as others have pointed out. I used to operate Krogyan with a savings account. Even used a paypal transcript to document my earnings which is pretty common for freelancers. No need to mention BTC at all, just mention IT consulting as purpose code.

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

And by regular and big he means really regular and really big. All you need is 10k as dormant cash in such current accounts. Pretty similar to standard HDFC/ICICI accounts.

If you don't know there is some limitation in saving account. When bank random check and found so many regular transaction they surely freeze acc and will tell you to open current account.

legendster

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Merit: 764

www.V.systems

Calculate your total annual earning and pay tax for that. That's it.

Doesn't matter how you earned. You are earning from trading, doesn't matter it's BTC or something else.

Makes sense, but do I need a current account or shall I keep trading using my savings bank account? If I'm suppose to get a current account, I need to show a firm/business (TIN number). I'm just not sure how to go about doing this step. How do you guys handle it?

No need for current account as others have pointed out. I used to operate Krogyan with a savings account. Even used a paypal transcript to document my earnings which is pretty common for freelancers. No need to mention BTC at all, just mention IT consulting as purpose code.

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

And by regular and big he means really regular and really big. All you need is 10k as dormant cash in such current accounts. Pretty similar to standard HDFC/ICICI accounts.

susila_bai

hero member

Activity: 1260

Merit: 524

Calculate your total annual earning and pay tax for that. That's it.

Doesn't matter how you earned. You are earning from trading, doesn't matter it's BTC or something else.

Makes sense, but do I need a current account or shall I keep trading using my savings bank account? If I'm suppose to get a current account, I need to show a firm/business (TIN number). I'm just not sure how to go about doing this step. How do you guys handle it?

It is not required to open firm/business account you can open individual current account and do the transaction in it, and you can show the transaction under short term profit or else you can show the details just like what you are showing when trading in Equity in share market.

deadley

legendary

Activity: 2562

Merit: 1064

Calculate your total annual earning and pay tax for that. That's it.

Doesn't matter how you earned. You are earning from trading, doesn't matter it's BTC or something else.

Makes sense, but do I need a current account or shall I keep trading using my savings bank account? If I'm suppose to get a current account, I need to show a firm/business (TIN number). I'm just not sure how to go about doing this step. How do you guys handle it?

Most probably you need current account, because otherwise 1 day your bank will freeze your bank acc because of regular big transaction.

you can make proprietorship, and open current account behalf of that. Tin number not necessary to open current acc.

Nam3

full member

Activity: 173

Merit: 100