Quote from: UKprod on May 05, 2021, 07:39:46 PM

Quote from: KryptoKings on May 03, 2021, 08:00:19 PM

But most if us have participated in so many campaigns over past these years. It is impossible to keep track of all of them.
Also as you know how crypto trade works. We buy sell buy sell so many times that it is such a tedious job to get all that info.

You would have to worry if your redemption amount in one particular financial year is huge. This is because your bank is required to report any huge financial transaction or suspicious transactions to the government. Further, if a ban is imposed, government is likely going to take the information from exchanges (in India, at least) on your cryptocurrency transactions and take the details of redemption of any amount to your bank account from such exchanges.

Having said this, you need to worry only if you have done something illegal with cryptocurrency or have failed to pay taxes on your cryptocurrency income. If you have only participated in signature campaigns and your income is below the minimum threshold for taxation, you have absolutely nothing to worry about. The limit for taxation has been Rs. 5 lakhs for the past 3 years.

Further, in relation to getting the info on all the transactions, kindly note that the income tax department can seek information and recover taxes only up to last 3 years (as amended in Finance Act, 2021) if income that is escaping taxation is below Rs. 50 lakhs. Only if the income escaping taxation is above Rs. 50 lakhs the income tax department can seek information up to 10 years.

I hope you have been compliant with the laws and filed your taxes (if required to do so) and hence do not face any trouble. However, if there is any concern, feel free to let me know. I would be happy to help you out in a legal and ethical manner.

Thank you for this detailed explanation. I would like to know what amount would be consider huge to attract tax men attention?
No I haven't done anything illegal and I always file my ITR on time.
Though I never mentioned crypto in my returns I show all income earned as freelancer.