Quote from: akhjob on Today at 03:00:54 PM

@webtricks Regarding Q2, I understand that every transfer is a taxable event. But how will they ascertain that I have realised profit in the exchange of BTC to USDT.? I acquired BTC using INR and then exchanged it for USDT. So unless I convert them back to BTC or INR which shows an increase in the original holding, how can they ascertain that I booked profit in those trades ?

They might not but India follows the system of self-assessment tax. While filing the return, it's you who will mention what your incomes are during the year, how much you made from the trades, etc. Government may or may not be able to catch you, that's a separate thing. I was only telling you what is correct as per the Act.

For a simple analogy, first you asked me - is it legal to kill someone? To which I simply replied - No! It is crime as per the law. Now, you are asking, what if I hide the body smartly so no one would be able to catch me? They might not able to catch you killing but that doesn't make the killing legal. Hope this clears the above.