P2P Trading
4 months ago
I am a P2P Trader, if I daily buy 1 lac rupees crypto and sell, my profit on selling is 2% to 3%. I have to pay tax on my profit or on transaction amount because one of my friend told me I have to pay 6% to 8% tax on transaction amount?
If I daily trade with 1 lac rupees my annual bank transaction amount exceeds 3.6 crore. Will I face any problem from the government or the bank because of this?
A.Dear Client ,
You will not have to pay tax on the transaction amount rather you will have to pay the tax on the gain that you make. The gains from trading crypto currencies are subject to tax at 30% (plus 4% cess) as per section 115BBH and for that you shall be taxed. Also be advised that P2P transaction leads to debit freeze many a times as you don't know where the money is coming from to your account. If the sender is using his account for cyber fraud or scam then there will be high probability that your account may be frozen so, beware.
You will not have to pay tax on the transaction amount rather you will have to pay the tax on the gain that you make. The gains from trading crypto currencies are subject to tax at 30% (plus 4% cess) as per section 115BBH and for that you shall be taxed. Also be advised that P2P transaction leads to debit freeze many a times as you don't know where the money is coming from to your account. If the sender is using his account for cyber fraud or scam then there will be high probability that your account may be frozen so, beware.
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A.Dear Client,
P2P crypto trading is subject to taxation in India. In a peer-to-peer (P2P) transaction, where a buyer pays cash for the transfer of virtual digital assets (VDAs) or crypto assets, there is a requirement to deduct tax at source (TDS) at a rate of 1%. The profits or gains generated from cryptocurrency trading are taxed at a flat rate of 30 %, with an additional 4% cess under Section 115BBH of the Income Tax Act, 1961. Section 194S levies 1% Tax Deducted at Source (TDS) on the transfer of crypto assets from July 01, 2022, if the transactions exceed ₹50,000 (or even ₹10,000 in some cases) in the same financial year. Capital Gains from Crytpo trading should be reported under Schedule VDA in the ITR and no deduction is allowed, except the cost of acquisition. It is advisable to consult with a Chartered Accountant or an Advocate practicing income tax for better clarification and steps in the matter
P2P crypto trading is subject to taxation in India. In a peer-to-peer (P2P) transaction, where a buyer pays cash for the transfer of virtual digital assets (VDAs) or crypto assets, there is a requirement to deduct tax at source (TDS) at a rate of 1%. The profits or gains generated from cryptocurrency trading are taxed at a flat rate of 30 %, with an additional 4% cess under Section 115BBH of the Income Tax Act, 1961. Section 194S levies 1% Tax Deducted at Source (TDS) on the transfer of crypto assets from July 01, 2022, if the transactions exceed ₹50,000 (or even ₹10,000 in some cases) in the same financial year. Capital Gains from Crytpo trading should be reported under Schedule VDA in the ITR and no deduction is allowed, except the cost of acquisition. It is advisable to consult with a Chartered Accountant or an Advocate practicing income tax for better clarification and steps in the matter
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