Since the markets around the world have corrected so much and may correct more. One day we may have to appreciate block chain tech so i we thinking to invest 20k for 3-4 years in Ethereum. What are your views? Also, please let me know about best and legal app to start with.
If its not regulated and can’t be regulated then i won’t put a single dime . Terra LUNA with was suppose to be stable coin 1-1 with USD , 8th largest Market cap in crypto went to 0 ( 99.99% fall in single day). People lost millions of dollars . $600 billion dollars wiped out . Its better to put money in legitimate business or other avenue then gamble on unregulated things.
Currently the lottery tickets are available at a considerable lower price so you buy the tickets now but ticket prices wont appreciate as long as US Govt doesnt comes with a big announcement to tame inflation and give capital markets a boost.
Try to avoid buying tickets through any of the Indian intermediary as there is going to be tax issues.
Definitely stay away from Indian Intermediaries. Choose internatioanl ones as there will be no TDS or GST. You can pay taxes on your gain as and when you realize it. Also prefer listed companies like Coinbase since they have relatively more protection in case of a crash.
I clearly said that Gains cant be detected and not your deposits.
Even deposits of such are not reported to IT Dept by Banks but lets assume that banks share such details with IT Dept they still cant do anything against you if you buy lottery tickets with that money.
I don’t understand how you are saying that gains can be tracked.
There is no NSE/BSE/CDSL/NSDL/Broker which report your gains to Income Tax Dept. There is absolutely nothing IT dept can do about this.
Even if SCN is issued in this Ponzi Scheme world its easy to fake statements hence you can get away with anything as long as you are not spending your gains visibly.
Govt can levy Income Tax on your expenditures too (with money arrived by Ponzi lottery) but it should be noticeable.
If you can give evidence for your expenditures with the money thats taxed then Govt can do nothing.
The only possible thing that they can do is declare lottery ponzi as illegal and hence they can arrest you on the basis that you involved in illegal activities. Then also there would be no tax implications but only fines as judge decides.
The only catch is that there is a TCS of 5% over the payments of 7 Lakh rupees sent to buy lottery tickets.
This deducted amount also you can claim while filing income tax return without any fuss.
The speciality of these lottery tickets are their anonimity. No PAN, no names, no physical address, No IPs.
Govt can go hang itself.
All that I am saying is what you are doing is illegal. Whether they will track it or not is not even a question. Infact even I feel they wont be able to.
Any illegal activity done wont be taxed unless you are caught. Even if I sell drugs and make money I can evade tax by not disclosing such transactions. So many officers accept bribes too. Nobody pays tax on them. Income tax is a self assessment tax and not disclosing your income intentionally to defruad the tax authorities comes tax evasion.
All that you have stated is absolutely right. Its just that its illegal. I hope you get my point.
I totally understood your point from the beginning.
I was answering the questions.
When people want to buy lottery ticket and put money into ponzi schemes what can I tell.
By dealing with foreing exchanges dealing in lottery you can save money on Taxes. Literally huge money as TDS and GST(still to be introduced)
Whether they are buying lottery from Indian exchanges or foreging exchanges there is 0 security for their losses. In this case I’ll suggest someone to choose an option where he can save on TDS and GST.
I’m not of the opinion that he shouldn’t declare his gains and pay taxes on it.
I’m saying that if done through Indian exchanges there will be TDS and GST whereas if done through foreign exchanges he can pay the actual taxes on the gains and not TDS.
Well. This may work. He will only end up saving gst as and when introduced. TDS is anyways set off against his income tax liability. But I do undertsand what you saying. At least for the time being he will get full amount on sale proceeds. He can pay actual taxes as and when he determines his final liability. Hmmmm. Makes sense.
I would like to check FEMA if this is covered under current account tramsaction. From my vague memory I remember securities are included but crypto isnt part of fhe definition of current account transaction. I studied it when cryptocurrency was not getting this much attention.
I shall get back.
Well. Did a little bit of study.
We assume crypto to be an asset. In such a case the transaction become capital by nature. All capital account transactions are prohibited without permission of the RBI
Assume it as not an asset. Then it fits into the definition of goods. If we buy or sell goods, FEMA rules on export will be applicable.
Either ways FEMA is applicable. I have not given reference to section number to keep it simple.
Also one more thing I wanted to point out since you have mentioned in the above post.
The following current account transactions are specifically prohibited
Remittances out of lottery winnings
Remittance of income from racing/ riding etc. or any other hobby
Remittance for purchase of lottery tickets, banned/ prescribed magazines, football pools, sweepstakes, etc.
PS: If you find any contrary view please share. I just had a glance pver FEMA and replied here. There is a possibility that I have interpreted the Act wrongly.