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But what about taxes on conversions.......?
I mean if sold btc for tether i mean i hold coins like stable coins is those taxable or only income tranfered to the bank is taxable......?
I have another doubt if i brought btc for $5000 sold btc and hold some usd coins for example btc sold for $3000 and converted to usdt and hold stable coins for 6 months.
And brought btc for $4000 and sold for $20000 and which brought price should i show should i show $4000 or $5000....?
Thanks!
Hey Vijay,
Thanks for your questions.
Now let us say I'am free lancer i have paid $5000 in btc next i have converted it to other coins like eth
and sold and converted it to inr which one should i show the price for it returns i mean i should show $5000..?
And also does converter also treated as trader or investor.......?
Thanks!
You don't have to pay taxes if you sold BTC for Tether (USDT). USDT also comes under the bracket of cryptocurrencies. Only income which you withdraw to bank is taxable.
For second question, it's up to you. Generally crypto-to-crypto transactions are not traceable so if you did crypto/crypto trade on exchange where you haven't done KYC and it is separate exchange from the one where you convert crypto to INR then you can consider $5000 as your purchase value and pay tax on Sell Amount less $5000. Alternatively, it is up to you if you wanna show two transactions. One bought for $5000 and sold for $3000. Other bought for $4000 and sold for $20000. But since second buying is not from your bank, I would advise you to go with first option and show whole trade as single transaction.