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Crypto Trades
2 weeks ago
Hi,
I am residing in Dubai and I have nre account. I did crypto trades both in AED and INR. I was using 1 lakh in INR for trading that was circled many times from AED to INR. Total amount was 1 lakh only each time but total transaction amount from same account are in crores. Can you please guide me how to file these transactions both in India and Dubai and pay taxes? Also, if there areany legal implications.
A.Dear Sir,
You may approach any chartered accountant or auditor who is having expert knowledge in the said trade.
You may approach any chartered accountant or auditor who is having expert knowledge in the said trade.
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A.Dear Client,
The United Arab Emirates (UAE) does not levy capital gains tax on cryptocurrency. As such, individuals and businesses in Dubai are not subject to capital gains tax on profits from cryptocurrency trading/sales. In India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. Gains made from trading cryptocurrencies are taxed at a rate of 30% plus 4% cess, according to Section 115BBH of the Income Tax Act, 1961. NRIs are subject to Crypto Taxation on their cryptocurrency investments, similar to resident Indians. They must pay capital gains tax on profits from crypto sales, disclose holdings to tax authorities, and comply with regulations to avoid penalties.
The United Arab Emirates (UAE) does not levy capital gains tax on cryptocurrency. As such, individuals and businesses in Dubai are not subject to capital gains tax on profits from cryptocurrency trading/sales. In India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. Gains made from trading cryptocurrencies are taxed at a rate of 30% plus 4% cess, according to Section 115BBH of the Income Tax Act, 1961. NRIs are subject to Crypto Taxation on their cryptocurrency investments, similar to resident Indians. They must pay capital gains tax on profits from crypto sales, disclose holdings to tax authorities, and comply with regulations to avoid penalties.
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A.Dear Client,
The existence of the Double Taxation Avoidance Agreement (DTAA) between India and the United Arab Emirates (UAE) plays an important role in their economic relationship.By eliminating the risk of double taxation, it fosters investment, enhances trade, and benefits taxpayers by offering relief, ultimately bolstering economic cooperation between India and the UAE. Hence please verify with an accountant on how to save tax through the double tax agreement between the two countries
The existence of the Double Taxation Avoidance Agreement (DTAA) between India and the United Arab Emirates (UAE) plays an important role in their economic relationship.By eliminating the risk of double taxation, it fosters investment, enhances trade, and benefits taxpayers by offering relief, ultimately bolstering economic cooperation between India and the UAE. Hence please verify with an accountant on how to save tax through the double tax agreement between the two countries
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