AskMe Anything about cryptocurrency

[The INSANE Trader]

Is bitcoin etf better or bitcoin crypto? Can we buy the bitcoin ETF from Indmoney?

Choosing between a Bitcoin ETF and directly buying Bitcoin (crypto) depends on your investment goals and risk tolerance.
Bitcoin ETF (Exchange-Traded Fund):
Advantages:
Regulated investment vehicle that trades on traditional stock exchanges.
Provides exposure to Bitcoin's price movements without needing to hold the underlying asset directly.
May be more suitable for investors looking for regulated products within their existing brokerage or investment accounts.
Considerations:
ETFs can have management fees.
You do not directly own Bitcoin; you own shares of the ETF.
The performance of the ETF may not perfectly track the price of Bitcoin due to various factors.
Buying Bitcoin (Cryptocurrency):

Advantages:
Direct ownership of Bitcoin.
Control over your private keys and wallets.
Potential for higher returns if Bitcoin's price increases significantly.

Considerations:
High volatility and risk.
Requires knowledge of crypto exchanges, wallets, and security practices.
Regulatory and legal considerations vary by jurisdiction.

Regarding Indmoney, you would need to check whether they offer Bitcoin ETFs on their platform. Not all investment platforms offer ETFs, especially in markets where they may not be as commonly available or regulated. If Bitcoin ETFs are available, you can typically buy them through your brokerage account or investment platform that supports ETF trading.

Before investing, consider your financial situation, investment goals, risk tolerance, and do thorough research or consult with a financial advisor if needed to make an informed decision.

 

[prometheus]

Hello Sunder! @sundernarwat I just had few queries in the crypto tax space:

Do we need to show all the transactions (Profit & Loss) while filing ITR in case of crypto or is it fine just to show the profitable trades. Also, what about airdrops like do we need to consider those too while filing out taxes?

Let's assume a person doesn't fall in any of the tax slabs and their overall income is less than 5L and they are eligible for a rebate, do they still need to pay tax on the annual profits made by all the crypto trades?

 

[sundernarwat]

Hello Sunder! @sundernarwat I just had few queries in the crypto tax space:

Do we need to show all the transactions (Profit & Loss) while filing ITR in case of crypto or is it fine just to show the profitable trades. Also, what about airdrops like do we need to consider those too while filing out taxes?

Let's assume a person doesn't fall in any of the tax slabs and their overall income is less than 5L and they are eligible for a rebate, do they still need to pay tax on the annual profits made by all the crypto trades?

Hello @prometheus , Sorry for late reply, i was very busy last days, let me answer your questions

Buy Sell All Transactions
Yes, you need to consider and provide all your crypto Buy, Sell trade transactions to CA team, then CA team will consider profitable sell transactions for tax liabilities, 30% tax on profits made

Profit Calculation Formula is ( Total Sell Amount - Total Buying Cost = Profits ) which are flat taxed at 30% rate
Also provide loss transactions, because on both sell and loss transactions you can claim back your deducted TDS ( If Any applicable)

Airdrops
If you had sold airdrop coins and tokens, then your buying cost is zero on them, now total sell amount is always full profit amount and its taxable at flat 30%

Tax Slab
As per crypto tax rule, tax is payable on all profits made irrespective of persons tax slab,
But, i think this is still not implemented in the ITR software, so people are still getting applicable rebate, because software is not calculating 30% flat tax on crypto profits and TDS Refunds are also available to claim

Still you can work with your tax professional for this, because they know more than me about taxation on crypto
i have told you what i have seen from last year to till date.


Need Help With Crypto Topics

I am planning to start a blog website for crypto education, If you have time, you can give me some topics and general inquiry, questions about crypto, which investors and traders would like to ask

i am also planning to provide paid one to one education sessions, let me know your thoughts on this too, its a good idea or not?

You can send me details on email - narwatventures@gmail.com

 

[aRvi]

I'm thinking to sell by crypto currency. As taxes in India is 30+%, in order to save on taxes I'm thinking to send crypto currency to my relative in USA and then they will sell that crypto currency and send back that amount to me.

I wanted to understand if that will be beneficial? What are the tax implication involved in that case?

 

[santanu47493]

You even can sell directly bro without tax even without tds ( I am p2p seller also buyer ) I sell people's crypto currency and cash deposit to their bank account for no tracing of money but I don't want to trade with you as I don't know you also you don't know me

 

[santanu47493]

You even can sell directly bro without tax even without tds ( I am p2p seller also buyer ) I sell people's crypto currency and cash deposit to their bank account for no tracing of money but I don't want to trade with you as I don't know you also you don't know me (don't use indian exchange and India fia registered exchange like binance)