Taxation in crypto and resell advertisment
9 months ago
1. In crypto Income tax = sale price - cost price. But what if I buy 1000 usdt (86 INR/usdt, for example), after that got in debt 100 usdt from foreigner and sold all this quantity - 1100 usdt (87 INR/usdt)? How do I calculate income tax?
2. There is another direction of Internet advertising. This is advertising from foreign bloggers, as well as on foreign small sites (not Google and Facebook), I plan to buy it abroad, then sell it for crypto, which I will sell in India on Binance. What taxes are included here? And what is the best way to minimize them? I read that small businesses don't have to report TDS if they're advertising, is that true?
A.Dear Sir,
Please consult any Auditor or Chartered Accountant as issue related to Tax matter and they are well versed with the said subject.
Please consult any Auditor or Chartered Accountant as issue related to Tax matter and they are well versed with the said subject.
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A.Dear client,
Crypto Income Tax Calculation: In many jurisdictions, including India, cryptocurrency transactions are treated as taxable events. When calculating income tax on cryptocurrency transactions, the general formula is to subtract the cost price (acquisition cost) from the sale price to determine the capital gains or losses. In your example, the calculation would be:
Income Tax = Sale Price - Cost Price
= (1100 USDT x 87 INR/USDT) - (1000 USDT x 86 INR/USDT)
It's important to convert the amounts to your local currency (INR) at the prevailing exchange rates at the time of the transaction. However, note that specific rules for crypto taxation may vary in different jurisdictions.
Foreign Advertising Income and Taxes: Income generated from foreign advertising can be subject to taxation in your jurisdiction. The taxation of such income will depend on the tax laws of your country. It is advisable to consult with a tax professional to understand the specific tax obligations and reporting requirements.
Regarding minimizing taxes, strategies may vary depending on your circumstances and the tax laws in your jurisdiction. Some common methods to potentially reduce tax liability include utilizing deductions, exemptions, or tax incentives available for businesses. However, it's crucial to consult with a tax professional who can provide guidance tailored to your specific situation.
As for the statement about small businesses not having to report Tax Deducted at Source (TDS) for advertising, please note that TDS regulations may vary by country. In India, TDS provisions generally apply to specified payments, including advertising expenses, exceeding certain thresholds. However, exemptions and specific rules may apply depending on the nature of the payment and the classification of the business. It is important to consult with a tax professional in your jurisdiction for accurate information on TDS requirements.
Crypto Income Tax Calculation: In many jurisdictions, including India, cryptocurrency transactions are treated as taxable events. When calculating income tax on cryptocurrency transactions, the general formula is to subtract the cost price (acquisition cost) from the sale price to determine the capital gains or losses. In your example, the calculation would be:
Income Tax = Sale Price - Cost Price
= (1100 USDT x 87 INR/USDT) - (1000 USDT x 86 INR/USDT)
It's important to convert the amounts to your local currency (INR) at the prevailing exchange rates at the time of the transaction. However, note that specific rules for crypto taxation may vary in different jurisdictions.
Foreign Advertising Income and Taxes: Income generated from foreign advertising can be subject to taxation in your jurisdiction. The taxation of such income will depend on the tax laws of your country. It is advisable to consult with a tax professional to understand the specific tax obligations and reporting requirements.
Regarding minimizing taxes, strategies may vary depending on your circumstances and the tax laws in your jurisdiction. Some common methods to potentially reduce tax liability include utilizing deductions, exemptions, or tax incentives available for businesses. However, it's crucial to consult with a tax professional who can provide guidance tailored to your specific situation.
As for the statement about small businesses not having to report Tax Deducted at Source (TDS) for advertising, please note that TDS regulations may vary by country. In India, TDS provisions generally apply to specified payments, including advertising expenses, exceeding certain thresholds. However, exemptions and specific rules may apply depending on the nature of the payment and the classification of the business. It is important to consult with a tax professional in your jurisdiction for accurate information on TDS requirements.
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