I know crypto falls in grey zone in terms of regulation until government finalizes what to do and then we will have fixed rules to enforce for the crypto brokers/exchanges.
I was interested in the legality for the purposes of taxation. I google searched bitcoin margin/future and this came up:- https://info.coindcx.com/bitcoin-and-cryptocurrency-futures-trading/
So is this legal if I deposit money in INR or does it violate any rules/guidelines?
Please let me know.
Crypto trading is legal but holding crypto in physical or any other form is illegal as one can face huge tax implications if holding in physical or any other form. You can check Youtube videos & search on internet. This can help u.
Currently crypto currency is major discussion going on, few countries are against these & few countries are with it as they are virtual currencies. It is big discussion everywhere & one can invest / trade if they r capable to take high risk & are high risk currencies than equity / commodities. In a fraction of seconds price changes. It all depends on news, tweet, economy & many more things. Their calculation are more complex than other things. U might find shows on TV about it on news channel & can search on internet. One who has knowledge about it can understand in detail & can trade invest in it, one without knowledge trades or invest might lose their money without knowing about a currency.
You need to research on ur own & take ur own deceision about it. As stock brokers are there, you will find crypto brokers offering investment in cryptocurrency. Like wazirx, zebpay, coinswitch kuber in India, binance, coindcx, & many others r there.
This is good that u posted & may others want to know more about this.
Purely from taxation point of view, it is irrelevant if your income is legal or not. As long as it is income, it is taxable.
Income Tax Act doesn’t speak about the legality of the sources of income in any section.
Hey @siva ,
From taxation perspective, if you earn income then you have to pay taxes irrespective of legality of such assets. (i.e. here Crypto)
Herewith sharing article related to taxation of crypto currency for better insights:
Hope, it helps!
Crypto trading is legal but there are taxes that you will have to pay on your profits. This is applicable only when you decide to sell it. In simple words, you will have to pay capital gains tax.
Finance Act 2022
The amount of income-tax calculated on the income from transfer of virtual digital asset at the rate of 30%
This amendment makes it fully legal in India in terms of trading / investing and its tax.
yea learned it hard way. without knowing this last yr accepted a large payment in crypto to save 5% commission on paypal, while filing IT they grabbed 30% from it.
Could have held it in a wallet.
it was payment not investment so withdrew right away. i dont like holding un regulated intruments. and after i learned 30% fee as IT i stopped accepting crypto as payment too.