Steemit Mentioned In: How to File Tax Returns in India for Your Bitcoin Profits—My Latest Feature In TheQuint!

in steemit •  10 months ago

TheQuint ranks amongst the top news media agencies in India as a popular digital news publication. It was founded by some of the biggest names from the Indian news media industry. In the past they have ran a story on my journey with Bitcoin and Steemit.

They have also approached me for a comment in another piece titled: Still Unregulated, Bitcoin Trade From India Jumps in Global Market!

I've been continuing my efforts on spreading the word about Steemit in India. Today, my article on filing your income earned via Bitcoin was published by TheQuint. Read it Here!

The following part of my article mentions Steemit. If you love using Steemit, then reading the entire article will give you a good insight into matters of accounting and taxation surrounding digital currencies.

In my time investing in cryptocurrencies in India, I've come across several hurdles with respect to taxation. There is so much ambiguity in this space resulting from ignorance. But mostly, it's due to the lack of any official guidelines, from any government agency dealing with matters of money, that confuses people and complicates matters.

After a lot of research, meeting different tax consultants and income tax officials, I have narrowed it down to 4 ways that you can file your returns to avoid running into the authorities for not disclosing your Bitcoin profits or income derived via cryptocurrency.

If you are from India, I strongly recommend that you take 5 minutes to read my article on TheQuint and familiarise yourself with the nuances of filing your returns. I'm sure that it will clear your doubts and make it easier for you to proceed with blogging and earning on Steemit, and withdrawing your income via Bitcoin to your bank account in India.

If you have any questions, please leave me a comment below.

Disclaimer: This is my personal experience and is not to be treated as a financial and/or accounting advice.


If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:

  1. 4 Tips For Steemit Account Recovery & Wallet Security!
  2. Steemit.Chat Contest #7 + Contest #6 Winners Announcement!

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This post is a whistleblower for those who say income from Cryptocurrencies can't be taxed. @firepower

Instead blame, curse and hate - we have the power to do workarounds from our side. We can be vigilant enough not to evade taxations on our own.

As an honest citizen, instead of worrying about taxations, we should find the possible ways so to avoid any legal discrepancies in future. No matter what Govt. does/takes action with regards to cryptocurrencies, it will remain an excellent platform for budding Entrepreneurs, bloggers and all who are creative as well actively looking for some passive income (having the risk factor).

The main problem arises when someone asks - "Where can I find the information related to cryptosphere?"

Unfortunately, there is a severe lack of sources where one can find adequate information on the taxation slabs for the same. Hence, they either pretend to ignore or say - they do not need to pay tax as Govt. is not showing any interest in this regard.

In this conspiracy, thank you for opening up with some useful measures that will surely help a lot of traders, exchangers and longterm holders as well.

Again, thanks to your contributions that always come loaded with so much of valuable information that one can read and get enriched with crypto awareness.

Resteemed it, so that it reaches to my every Indian friend to create a massive appearance.

Its a new information that you have passed for us.. and thanks for detailed description of tax slabs in all the four categories with your detailed article on quint @firepower

It's great to see that you managed to get Steemit some spotlight in such as big media outlet! Good job! :D

It's also incredibly important to teach people about cryptos and tax; I think a lot of people are afraid of collecting too much crypto because of the difficulty of taxing it correctly. It can be really difficult in some countries!

Yeah, glad to your real info, for that we can achieve more benefit,,, @firepower

@firepower Good post and excelent information ^^

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Thank you.

Great post and congrats for the feature. As some (and you) said, because of the KYC norms, any money we earn wont be going unnoticed. And the reason why we will HAVE to show it as income and then follow the tax rules. But I am not complaining - gotta keep a 'clean' profile under the laws. You never know what Mr Modi and his team are upto :-D

thank's for sharing @firepowe

Someone needs to come up with tax coin. LOL

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Hahahaha that will be good. Indian govt. Have to launch such coin 😂😂😂😂

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You can not get converted steem, i.c. BTC into ZebPay. It is a 100% closed system, you can not send or receive external BTC
I am very happy with this post though!

Good information.thanks to sharing this post.

There will be much moe power, generated by Indian people. There is a HUGE market, let them STEEM into the crypto!

thank's for sharing

@firepower is same rules apply for Pakistan ?

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If you are converting into cash via apps that require KYC, then I guess its a YES

Hi, Plz give me some suggestions how can I increase rank, got more upvote. @firepower

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increse your follwers.....

Thanks @firepower for such a great info. It will help us in our steem & bitcoin journey

I was thinking that there is no category yet or may be it is not important to disclose(since there is no legal stand yet). Thanks for sharing this, indeed a new information for many Indians here.

great news about your file tax returns in btc @firepower

Thanks @firepower i was in doubt of the taxation slab.
Reading quint help me clearing my doubt. Good understanding for myself being an accountant.👌👍

geat news, i want to learn it

Thank you @firepower. That was very helpful. Filing tax this way was a confusing topic always(not that I have earned a lot haha).

Great and informative post you shared.specially for an indian like i am.
The Artical was very helpful that i got to know about all the information about the taxation of bitcoin.
Everything is Very well explained with full information.
Re-steemed

The problem is always the same... tracking and making it simple for authorities to later do audits. Their auditing rules ask for things that are somehow hard to deliver, if you're a trader for example....

I mean.. I could be traiding in 10 exchanges... and then cross profits, then change between several coins, and then back to NZD... ONLY when I pass to NZD is the crucial point. Because if the exchange is not simple, things will be messy.

So, I advise you to try to make things simple, and the last and fist transaction to your country FIAT, you should make it on a website that can:

  • Export details about that transaction (and reference timestamps, money converted, between which pairs, etc..)
  • If the exchange is KYC the better! - it will save you some time at least.
  • Wait for all your crypto and issue 1 last transaction to a different address and then convert it to FIAT. This will save you the pain of explaining every account you have (some exchanges have this functionality built in when you trade to FIAT).
  • Make your own records... because sometimes exchanges can go down or lose all their information.

If you do not care about the above... and you wish to still pay tax. You can always pay the MAXIMUM tax possible. And save you from any enquiries. As long you can prove the money was indeed yours.

Cheers

Yes, It is very important to know about tax filing. I have resteemed your article.

good writting..@firepower

@thank's for sharing..

@followed and upvoted

Is 10 Lakhs your total yearly income or 10 Lakhs only from Bitcoin?

great guy @firepower
your post always keeps me highly motivated about the future of steem as you portray it in good light not withstanding your efforts in other innovative projects! keep it up.
can you review this new coin yet to be in exchange called Elyte. www.elyte.io
community loves it and its gaining grounds daily. check my last post for more info
thanks once more

Thanks for the valuable information about tax filing from cryptocurrncy. Resteem your important suggestions to the people.

this is a superb post. Thank you so much @firepower . I would love to get in touch with you some day to understand all of this. I am totally lost with crypto-currency trading ... If you are ever in Delhi, I would love to get in touch. Regards to your Mom @geetharao and success to you :)

Hey, Read your article on TheQuint. Great article @firework. I am so ready to sell my bitcoin and face all that taxes thing but sadly, Bittrex account verification taking ages to verify my account. Can you believe that they are torturing us on this point of time where bitcoin is level high. ::facepalm::

thanks 🙏

EDIT: Confirmed from my tax consultant as well... If you are a resident of India then irrespective of your source and origin of income, you are liable to pay taxes...

Thanks a truckload for this post. What I basically wanted to understand was whether those who are filing tax returns for Bitcoin or any such cryptocurrency earnings are facing any kind of issues in India and if so, how do they overcome that. I am a freelancer and have a CA who helps me out with my my taxes but even he doesn't know too much about the tax laws around crypto earnings.

I don't like this. Stay anonymous, avoid government intervention. But I still commend your efforts. Maybe this could bring cryptocurrencies to the mainstream

I don't earn nowhere near 10 lacs so I don't have to fill any taxes right?

i just read your article and one thing just want to know that if income cross over 10 lakhs of year via bitcoin in indian rupees then only have to pay 30 % tax and if it below it we not need to pay any tax?

You should use kionex rather than zebpay to cash out your bitcioins. Much better selling rates.