Quote from: akhjob on Today at 09:33:37 AM

@webtricks @teosanru I got few questions.

1. What if I buy BTC for 1 lakh at the start of a financial year let's say 1 April 2022 but didn't sell it in the financial year and the price was 2 lakhs on 31st March 2023. But I sold it in the next financial year for 2.1 lakhs on 1 April 2023 or later. Will I be taxed for 1.1 lakh or 0.1 lakh for the year 2023-24 ?

2. Let's say I bought BTC when it dumped using INR and when the price pumped I exchanged BTC to USDT. I will then never exchange my USDT to btc or INR. Should I pay tax for this? If so why.

3. How to calculate the profits in BTC pairs. If I trade in BTC pairs and make a realised profit of 0.1 BTC should I pay 0.03 BTC as Tax? Or equivalent inr value at the time of trade or filing tax?

Thanks in advance.

I am not very active in the forum nowadays, so quote me when you answer this so that I get notified. Thanks

1. You will be taxed on Rs. 1.1 lakh in FY 2023-24. Only cost of acquisition is allowed to be deducted and your cost of acquisition will remain Rs. 1 lakh forever, no benefit of indexation will be provided.

2. Yes. This will still be taxable. Since, the tax is on 'transfer' which includes exchange, selling BTC for USDT will also be considered as transfer as you are exchanging one crypto for the other. Liquidating USDT doesn't matter. Your one trade is over which is a separate taxable event. When you will sell USDT, it will be second taxable event and separate tax calculation on it will be required if there is a change in its value.

3. INR equivalent of 0.03 BTC will be taxed as on the date of trade. However, the formula to calculate INR value is not yet published. Usually, it is not a part of Section but announced separately as Rules or Notifications. So, we have to wait for more clarity on this one from the government.