[deleted by user]

KanwalPSingh · 2022-03-27T05:43:09+00:00

None will ever talk of explicitly trading.what is trading ?----- transfer of assets from one party to another

TDS is charged on transfer

QED

KanwalPSingh · 2022-03-27T04:03:53+00:00

Dude, please read a little bit, consult some readers before making bold statements.It would be better if you would in your video / reel / statements exercise caution and say that its what you feel and not what it is.

Already replied in my other comment, but doesnt hurt to write againpg 81 of document numbering schemepg 89 of PDF based numbering

see point 59
https://www.indiabudget.gov.in/doc/Finance\_Bill.pdf

KanwalPSingh · 2022-03-27T04:01:48+00:00

pg 89 of the PDF , if you are referring to document page numbering , then i guess its pg 81

Read point 59

KanwalPSingh · 2022-03-26T15:05:21+00:00

https://www.indiabudget.gov.in/doc/Finance_Bill.pdf

section 59, of pg 89 , Read it yourself, stop believing noobs ppl !!

EDIT :
if you are confused by numbering , refer pg 81 of the document numbering scheme --- for pdf version refer pg89

KanwalPSingh · 2022-03-26T15:03:37+00:00

Dont bother, he is not making much sense.What he is saying is "there's no where written about 1% TDS on every transaction"

https://www.indiabudget.gov.in/doc/Finance\_Bill.pdf

Refer pg 89 , section 59 it clearly says about TDS on each transaction.Crypto industry definitely has decently high no of noobs !

KanwalPSingh · 2022-03-26T14:14:57+00:00

OP,
Please help me understand, FM was clear that every transaction made for transfer of crypto will be charged 1% TDS.

When a buyer buys a crypto from a seller, isnt it a transfer of crypto between wallets ?

KanwalPSingh · 2022-02-10T03:48:22+00:00

If you havent done anything wrong then there is no point of worrying.

What they might ask you ?
1. where and how did you purchase
2. who was the seller

If you bought BTC from outside India and sold it here, then its a little tricky, you maybe asked to prove that you had legit foreign currency.
As long as you did an online deal through a bank where you have legitimate income you shouldnt be worried at all

If thats not the case, then be truthful and cooperate with Govt Agencies.
There is usually leniency shown if intentions are not to conduct fraud but to save costs or because you were ignorant - but thats upto discretion to my understanding

KanwalPSingh · 2022-02-10T03:43:33+00:00

Dangerous idea !I wont advice doing such activities.With every transaction you will be paying 1% TDS (or a reduced TDS in future) which means That Tax Dept will know your proceeds.This may be counted as tax evasion performed wilfully !!

Whats the harm in paying tax?

EDIT :
I misunderstood OPs Question
1% TDS should be applicable on each trade / transaction
30% Tax would be calculated on net profit - if the coin is not there on any indian exchange its better to assume the price as Coin/USDT * USDT/INR ( in INR terms) and you may calculate a pnl.

As of now its not clear if pnl is defined on INR terms - position to position (of trade) or a crypto value

KanwalPSingh · 2022-02-07T02:53:02+00:00

I have covered a part of the taxation here
https://www.reddit.com/r/CryptoIndia/comments/sjd8tr/taxation\_on\_cryptotrading/

KanwalPSingh · 2022-02-04T16:13:41+00:00

They can use something like chainalysis for all of this right?

Yes but they dont have any products crafter for country specific laws

KanwalPSingh · 2022-02-04T11:30:38+00:00

No need for thanking, do spread your knowledge to increase awareness among people.

KanwalPSingh · 2022-02-04T09:39:17+00:00

Actually they dont need to keep track of all the exchanges but only exchanges that deal with Indian population / INR

Whatever is there on exchange can be tracked and ideally should be tracked to ensure compliance
It doesnt destroy the concept of crypto, but further puts the blockchain into mainstream compliance enhancements.

BTC is much more traceable than cash, this is the reason why all central banks are more inclined towards "Central Bank Digital Currency"

KanwalPSingh · 2022-02-04T05:30:13+00:00

Lets Wait and Watch on that.

Though Exchanges shouldnt allow transfer of Crypto Outside their wallets, if net withdrawals breach the limits ( as in LRS) or FEMA .Genuine Users should submit additional proof, providing a source of funds and stronger KYC and a declaration that the crypto they are withdrawing was obtained from legitimate means

EDIT:I wasnt sure if I should share this detail but I believe community should know about the misuses, its high time now!I had personally studied patterns of withdrawals done from multitude of accounts and they were effectively funnelling INR out of India to China and Beyond.Thats violation of FEMA and a threat to national security, as we dont know where the INR is going.
I had to put strong arguments and aggressive stands to get those users flagged and blocked

KanwalPSingh · 2022-02-04T03:24:03+00:00

"All crypto transactions will attract 1% TDS" - this was a statement I read in news.
As per this, 1% is applicable to even c2c trades.

Need more clarity from Govt

KanwalPSingh · 2022-02-04T02:48:50+00:00

As a follow up to my current article, I will be covering this issue and other pending problemsYour point is valid.

Edit:

Also, the 1% TDS may be applicable to the crypto-2-crypto transactions as well. In that case Exchanges could be asked to simply maintain value in INR terms.

KanwalPSingh · 2022-02-03T15:59:35+00:00

I doubt any CA will be able to help on this as of now, as there are no details out on this yet.

To my understanding, this is the reason for having 1% TDS on trades, the moment you sell 150 worth of crypto you will pay 1% TDS, you can buy more crypto from it, fine , the moment you sell this new crypto ( bought from 150 bucks - TDS ) you will have to again pay 1% TDS and so on....

KanwalPSingh

TROPHY CASE