Capital Gain applies only when you have a gain on your invested capital. If you have never bought crypto, there is no question of capital gain either.
Yes, right. But the question is what could be the alternative now. I want a tension free filing of income with no trouble from Income Tax Dep. Therefore, I thought declaring my whole income as CG (although it isn't) could be an easy way out. Though I have to pay tax lot more than what it will be in presumptive taxation, but still Income Tax dep. won't investigate CG much.
Make sure to accept the proceed of your crypto sales at a current account. Keep note of all the transactions. Pay tax as per presumptive taxation rules.
I did file my return under 44ADA as presumptive taxation last year because it was possible to trail back the source of income via Zebpay account. I can easily differentiate my crypto receipts from other receipts because they were credited from Zebpay account. But this year, receipts have come from personal accounts of buyers because I sold on P2P exchanges. Hence, it is almost impossible to differentiate which are actually crypto receipts and which are not. In such circumstances, I have no evidence to trail back transaction to my crypto earnings. Income Tax Department will surely not believe my return on mere words.
Remember, if the total volume is over 20L INR, you need GST registration.
Only if Business Receipts/Turnover is above 20L, right? GST and Income Tax are two separate domains. Last year my total income did exceed 20L but I smartly distributed it among 5 heads of income and income under 44ADA was lower than 20L. I showed excess as Capital Gains and Other Incomes. Hence I was free from the burden of GST.