https://webtricks.website/image/bitcointalkBorder3.pnghttps://webtricks.website/image/bitcointalkBorder2.pngPeople Pay Your Taxes - v2.0
Details on taxation of Bitcoin in India
This thread is a newer version of old thread which can be found
here. As Crypto Economy has grown exponentially in last few years, a thread was needed with much more detailed information about taxation than the last one so here it is.
I will start the thread with the rule of thumb:
"Since bitcoin has no legal/illegal status in India, you don't have to pay tax on keeping/holding bitcoin. You may have 0.001 or 100 BTC in your wallet but no tax to be levied as far as amount is kept in the form of Bitcoin. Bitcoin is currently considered at par with securities such as shares for taxation purpose. https://webtricks.website/image/bitcointalkBorder.pngSo when tax has to be paid?
Whenever you convert your crypto holding to Indian Rupee and you have made some profit/income, you have to pay tax. As simple as this. For more clarification, check image below:
Note: You have to file return irrespective of whether you made profits or not. Paying tax and file return are not the same thing.
https://webtricks.website/image/bitcointalkBorder.pngOk! So we have discussed when to pay tax, now is the time to discuss how and how much tax to pay. In order to discuss that we first have to ascertain various instances or possible scenarios where one make income or profits in bitcoin (or altcoins).
Case 1 (rarest case): I receive salary in Bitcoins
You may be receiving salary in Bitcoin either from local business...
Case 2 (common case): I earn Bitcoins from Sig Campaigns, Bounties, misc. sources
Well, this case covers me and most of the members here. You may be receiving signature payments...
Case 3 (most common case): I earn profits by buying/selling Bitcoins (or Altcoins)
So the largest portion of Indians associated with Bitcoins......
Well & very clear explained, how to legalise Crypto Income in India.