Need help regarding Crypto Tax

[Enthusiastic]

I have a Doubt I am student (no Income source). I don't have knowledge about income TAX. So, Please help ne I am confused and Panic after New rules and news(100% penalties, 6 months jails news)



How I Earn-

> I do 11-12 trade whenever crypto goes in Deep and make profit.

> Also , I also get Intreste on My crypto staking for whole 365 days of year (200-600rs)

> Crypto Airdrop, Binanace Learn & Earn



In this financial year My Capital Gain is 2.03K income 264.32 (calculated by Binocs Website). Refer Attached screenshots



●Am I need to pay 30% tax + 1% TDS?

● If Yes, then how much?

●what can happen with me, if I do not pay tax ?(because lac of information about crypto tax)



More information-

I use Binance App for trading and holding

And use P2P for withdrawal or Deposit (4-5 times in year).



If go to CA then it will cost me more than TAX or profit. Please help me, and even tag someone who can help me. I am panic coz of News and YouTube Videos, I can't bear thats penlty and Headache.

 

[luciferlucifer is verified member.]

Yes you have to pay 29% + 1% TDS

 

[Enthusiastic]

Yes you have to pay 29% + 1% TDS

But if I pay tax then my net profit will be too much low as compared to time risk and extreme headache

This Tax rule really not making any scene, I make 739rs loss in 20-21 and 21-22, and 2.03 k profit in 22-23. If paid pay tax then I will decently go in loss.



2030-739= 1291 ( All time Net profit without tax)


2030 - 609rs (*30%) -739= 682rs (All time Net profit with after paying Tax)



Even I don't have knowledge about how to file IT.

I think I should not file any tax, and decided to leave on my fate😅.



But I am little scared because they really gatherings information from Indian exchanges, I an able to see my 149rs (Coindcx) in Form 26A

 

[luciferlucifer is verified member.]

But if I pay tax then my net profit will be too much low as compared to time risk and extreme headache

This Tax rule really not making any scene, I make 739rs loss in 20-21 and 21-22, and 2.03 k profit in 22-23. If paid pay tax then I will decently go in loss.



2030-739= 1291 ( All time Net profit without tax)


2030 - 609rs (*30%) -739= 682rs (All time Net profit with after paying Tax)



Even I don't have knowledge about how to file IT.

I think I should not file any tax, and decided to leave on my fate😅.



But I am little scared because they really gatherings information from Indian exchanges, I an able to see my 149rs (Coindcx) in Form 26A

For this small amount there wont be repercussions in the short term. that's what i think but its up to you bro as per law you need to pay tax

pay for the last financial year that's what my suggestion is 21-22
Also with crypto trades you cannot settle loss against profit earned

 

[SiddharthR]

But if I pay tax then my net profit will be too much low as compared to time risk and extreme headache

This Tax rule really not making any scene, I make 739rs loss in 20-21 and 21-22, and 2.03 k profit in 22-23. If paid pay tax then I will decently go in loss.



2030-739= 1291 ( All time Net profit without tax)


2030 - 609rs (*30%) -739= 682rs (All time Net profit with after paying Tax)



Even I don't have knowledge about how to file IT.

I think I should not file any tax, and decided to leave on my fate😅.



But I am little scared because they really gatherings information from Indian exchanges, I an able to see my 149rs (Coindcx) in Form 26A

The message of government for 30% tax is :
Don't invest in crypto unless you are HNI & can withstand even by losing somewhat money.
That's why they also don't allow to settle loss against profit.

In your case, government's intention worked as you are already stating that your profit will be too less if you invest....
IMO, any wise man would tell you to invest the only amount which you could afford to lose.

 

[Enthusiastic]

For this small amount there wont be repercussions in the short term. that's what i think but its up to you bro as per law you need to pay tax

pay for the last financial year that's what my suggestion is 21-22
Also with crypto trades you cannot settle loss against profit earned

In 21-22 I was not using my account. My Profit was in negative (-739) according to Binocs Website (which help to Calculate taxable Profit). I don't think I need to pay tax on that because, Yest after 1.5 years i have not touched that investment,

second point is that was not my Account, I opened Wazirx account with my cousin Document. So that is saperate account. Where I have not touched thats amount from long time not even withdraw or sell. So, yet no need to pay tax on that.

But after 2022 I start to use my own Binance account and made 2.03k Profit and even withdraw. So i need to pay tax only on this amount. So I need to file ITR, in end of this financial year. Am i Right?

 

[Enthusiastic]

The message of government for 30% tax is :
Don't invest in crypto unless you are HNI & can withstand even by losing somewhat money.
That's why they also don't allow to settle loss against profit.

In your case, government's intention worked as you are already stating that your profit will be too less if you invest....
IMO, any wise man would tell you to invest the only amount which you could afford to lose.

The message of government for 30% tax is :
Don't invest in crypto unless you are HNI & can withstand even by losing somewhat money.
That's why they also don't allow to settle loss against profit.

In your case, government's intention worked as you are already stating that your profit will be too less if you invest....
IMO, any wise man would tell you to invest the only amount which you could afford to lose.

So, Should I Withdraw my all money from Binance and pay tax for this year with bearing some loss and say to bye bye to Crypto?

 

[SiddharthR]

So, Should I Withdraw my all money from Binance and pay tax for this year with bearing some loss and say to bye bye to Crypto?

It's on you
But IMO Yes

 

[Lebedka]

Hey there! It's totally understandable to be considering withdrawing your money from Binance and paying taxes for this year. It can be a tough decision to make, but it's important to prioritize your financial responsibilities. However, before you say goodbye to crypto altogether, have you considered exploring other options or diversifying your portfolio?

 

[Enthusiastic]

Hey there! It's totally understandable to be considering withdrawing your money from Binance and paying taxes for this year. It can be a tough decision to make, but it's important to prioritize your financial responsibilities. However, before you say goodbye to crypto altogether, have you considered exploring other options or diversifying your portfolio?

It's really, good question. But currently after crypto I am using only 12% Club to get some good returns. I am thinking to diversify portfolio soon after 2-3 months.