;into it for trading for making money out of it. Now your question earlier was how do you calculate taxes, right, when you’re trading actively. Well, unfortunately, I’m going to have to tell you that just by looking at technical understanding, regardless of whether you trade on centralized exchanges or you trade on decentralized exchanges, you’ve got to go to an income tax expert at this system because nobody will be able to factor in all your trading stuff it’s it’s a fully manual process, it’ll identify your nature of activity, your intent and then there’s a lot of, you know, in trade analysis that has to be done. You know things like, you know, the turnover is just number of transactions the frequency the intensity for your trades and then, as per your activity, there are different ways to tax it. For example, if you’re into derivatives fine and, you know, different regulations on bitcoins approach towards derivatives and how you pay taxes on derivatives – short term or long term equity the way a business and profession is generally treated differently under the area certain profits are taxed as speculative business income and so on. So, it completely definition is going to depend on your activity and what intensity you are into the trade. And then you have this income and obviously the income shall be included in your total income and, you know, and then you shall have to pay taxes according to that under business profession or as regular income. Yes. Question – But is there any reduction that we can get here? Or, you know, also and you know how do we categorize this under income tax return?Answer – Yes, you can definitely take certain deductions for your trading business or profession, like, you know. You have the normal business and profession deductions like you have your rent, your salary, salary to your employees, all of that the normal deductions so for example, you will be able to take out the rent of your house, the rent that you pay for your trading office, different kind of salaries, etc. Also question -Then you also mentioned that you know, interest and all of that, and we will move on to that next but also how do we categorize this under income tax where to categorizes business income. The trade will be treated as a business income or shall be business profession income derived from GST or BTCS. Everything with an investors’ income and you accumulate it as per section 145 and you do one sheet under 56 60 respectively, to elaborate on that, or let’s take a very solid use case that if it’s a business income you shall be doing GST registrations as well, depending on the turnover and the kind of trade that you are doing, and all that right? So, you know, you have to look at in totality it’s a complete, different activity and different nature from the income tax perspective and from a GST or a BTCS perspective. All right, let’s move on to the next, which is mining interest or staking, yes, it’s simple, you generate money then, you get an upright or your money in terms of interest, so, for all of that as well, it completely depends on your activity and nature of your trade, however, also on the fact whether whichever category, you put it in, you will have to disclose the income in different ways, sometimes your standard deduction sometimes well under certain or the other section of the income tax act and also depending on the need of the sector, it is sometimes business and profession, sometimes it is an investment income so, you’ll have different ways even to tax as such and then depending on that you’ll have different deduction limits and different methodologies. So guys, I think with that, what we’ve discussed was clear, that we have made so much money and everyone’s gonna have to pay taxes. So. I hope you found this beneficial. If you have another question for the next session or if you have another, you know, if you want us to cover a certain type of cryptocurrency or anything else as such. I hope you found this useful and you could get some of the basics from here. But this is all for today and I hope you have benefited from this overall topic. Happy profits from crypto.
2023 India: Everything You Need to Know About Cryptocurrency Tax Laws
