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Welcome back @webtricks. Looking at the signature that you are wearing I am assuming that we will now here from you more often. Haha, thanks for the welcome! Bitcointalk has been always my first love in crypto and indeed it's a pleasure to contribute on the forum and let me assure you that the campaigns aren't something that induce me to be more active on the forum. That's why I always look to join campaigns with no minimum post so I don't just write posts for the sake of reaching minimum condition.
This why it is better to use a local exchange than a P2P service platform as on a local exchange TDS deduction is done instantly when you do a trade. Whereas if you do not use a local exchange you have to do the math all by yourself.
Just a reminder: 7 years jail if you do not pay TDS on time
Just a reminder: 7 years jail if you do not pay TDS on time
Good point. It is always better to use the standard mediums and avoid any possibility of compliance mistake. The prominent Indian Exchanges have properly implemented TDS structure and better to use those if the amount isn't big.
Just went ahead and read the big article. Everything issue has been discussed with an example which was helpful. I also found out that upto INR 50k as a crypto gift would not attract tax in a this financial year. The other thing that I understood is that for filling the form you would need a CA or a tax consultant. The form for me is not personally still not clear. Last date of submission is 31st of July.
The ITR form takes into consideration many things. The things like multiple house properties, capital gains and/or business income have implications on the choice of ITR. So like you said, it's always best to consult a CA or a tax consultant before filing the income tax return.
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1% TDS will be applicable on the total $7000. This is very important point. I missed it in my post above. When you sell crypto on Exchanges, the whole amount is considered as the transfer. So while showing the amount of consideration u/s 115BBH, you are required to show the whole amount $7000 but you can show $5000 as the cost of acquisition, hence the net amount chargeable to tax u/s 115BBH will be $2000.
1% TDS will be applicable on the total $7000. This is very important point. I missed it in my post above. When you sell crypto on Exchanges, the whole amount is considered as the transfer. So while showing the amount of consideration u/s 115BBH, you are required to show the whole amount $7000 but you can show $5000 as the cost of acquisition, hence the net amount chargeable to tax u/s 115BBH will be $2000.
That clears so many things. I was always under the assumption that EVERY crypto income is taxed under 30% tax slab.
This was very much unfair according to me since traders were taxed only on their profits but the ones who are being paid in crypto were taxed on the whole income.
Now that things are more clear, I think the income from campaigns will be added to our income from our full time jobs in INR.
Together both the income will be taxed under the normal tax slabs if I am not wrong.
Yes, both incomes will be taxed as per the normal tax slabs but remember, don't directly add the campaign earnings to your salary from the full time job. Both will be shown under separate heads.