I do use Indian exchanges to convert crypto to inr (money stays there momentarily) as I don't want to go through hassle of p2p (I have had bad experience with p2p dealings in past, which has left sour taste).
So you pay 30% tax?? OMG!
I have a question here. I guess Indian exchanges ask for the source of crypto you are trying to convert? I don't know as I have never used an Indian exchange.
Or are you allowed to fill your crypto wallet and covert them to INR after KYC verification?
I am asking this because I want to convert some of the signature wallet earnings to INR in future.
Let me know if you want to go through a P2P trade. I know a person who with whom I can arrange a P2P trade. You can PM me if interested.
Coming back to your question, they don't ask for source of crypto if the amount is less and even if they ask then we can mention it and proceed with the transaction.
KYC verification is mandatory though and only if your KYC is fully verified you will be allowed for INR transactions.