Tax season upcoming - what are your plans?

avikz

legendary

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Quote from: manishanand on February 09, 2019, 10:20:25 AM

my suggestion would me that if we donate money to charity then we don't need to pay huge taxes as per said by the Indian government. This will help the poor people too and plus you don't have to take tension for your tax just need to give some money to NGOs.
Here is the article which state it - https://www.businesstoday.in/moneytoday/tax/tax-saving-tips-contribute-to-charities-and-ngos/story/206573.html

Why donate when you can enjoy your financial freedom by paying a little amount of tax? It makes no sense to me because I am a middle class person mostly depending on my salary income. Donation may work for rich people but for a common man like me, donation is not an option.

We have many options for saving taxes like insurance, ELss, health insurance for parents, home loan etc.

manishanand

member

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my suggestion would me that if we donate money to charity then we don't need to pay huge taxes as per said by the Indian government. This will help the poor people too and plus you don't have to take tension for your tax just need to give some money to NGOs.
Here is the article which state it - https://www.businesstoday.in/moneytoday/tax/tax-saving-tips-contribute-to-charities-and-ngos/story/206573.html

eaLiTy

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Have Fun )@@( Stay Safe

Quote from: avikz on January 22, 2019, 05:24:49 AM

For me, I have been showing the income under the head "income from other sources" which gets calculated in your total income and gives you a tax calculation. But this is effectively increasing my tax amount which I am paying out of my pocket. Any plan for this year to mitigate the due tax amount?

Since there is no clear regulations you should pay your taxes under income from other sources to be on the right side of the law. Since you are in the upper tax slab contacting a good chartered accountant is the way to go as they will suggest what to do to reduce the amount you pay.

Quote from: avikz on January 24, 2019, 10:01:52 AM

Not really mate! Cryptos are not a legal tender in India. So it may be possible that I make 10 bitcoin from my yearly trading. But unless and until I cash out that bitcoins to the local currency, I will not be able to use that. I can have 10 bitcoins at my wallet, but it is of now use unless it is cashed out to INR. So how it can be considered an income if it doesn't have any value in my country?

You really cannot tell that bitcoin does not have any valuation in India. As long as you are able to withdraw to fiat currency this statement is void. Tongue

There is no regulation and clarity on the entire market, since the amount is coming directly to your bank account you are accountable for the amount you receive.

avikz

legendary

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Quote from: bharathve on January 23, 2019, 09:27:58 PM

Its a double edged sword though. We might show that p2p transaction as something else but if the person on otherside of p2p reports that as "crypto buying and selling", that might trigger an enquiry as to why we showed it different.

Hide at your own risk.

Not really mate! Cryptos are not a legal tender in India. So it may be possible that I make 10 bitcoin from my yearly trading. But unless and until I cash out that bitcoins to the local currency, I will not be able to use that. I can have 10 bitcoins at my wallet, but it is of now use unless it is cashed out to INR. So how it can be considered an income if it doesn't have any value in my country?

bharathve

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Its a double edged sword though. We might show that p2p transaction as something else but if the person on otherside of p2p reports that as "crypto buying and selling", that might trigger an enquiry as to why we showed it different.

Hide at your own risk.

avikz

legendary

Activity: 3080

Merit: 1500

Even I am doing the same, p2p trading through localbitcoins and localetherum platforms. I am only showing the amounts that is being credited to my bank account. I make profits from crypto trading as well but I am not able to use that profit until I am transferring it to my bank account. So I am excluding the crypto trading profit from my income as it is almost impossible to quantify in rupees terms.

Then at the end of the year, I am consolidating all amounts that I have received as a credit in my bank account and reporting under "income from other sources" head. Do you think it is the right way to do considering crypto is not a recognized form of money in India?

susila_bai

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As i am doing trading through P2P so what ever the transaction are in my bank account i am showing as service charges and product purchased. As i am doing computer buying and selling so i can show the transaction in my business. Until their is no legal taxation i dont think it will be good to show cryptocurrency profit, if not we will be in doing illegal business.

avikz

legendary

Activity: 3080

Merit: 1500

Dear fellow members, as you all know that tax season is upcoming and we have started submitting the IPSF documents to our employers for year end tax calculation. What are your plans and how are you planning to show your income from cryptocurrency in your tax submission form?

For me, I have been showing the income under the head "income from other sources" which gets calculated in your total income and gives you a tax calculation. But this is effectively increasing my tax amount which I am paying out of my pocket. Any plan for this year to mitigate the due tax amount? I am already in 20% tax bracket. Any suggestion will be appreciated!

Topic: Tax season upcoming - what are your plans? (Read 129 times)