Cryptocurrency Arbitrage

- RBI has filed petition against SC decision. There are no specific provisions in the income tax law for dealing with such cases. Prudently,it should be business income and will be taxable if you will be resident in India in the year of trade. In case of Individual, tax is payable on the basis of residential status. 

- Proprietorship firm or individual don;t have any difference in terms of income taxation. In case of proprietorship, you will be required to open a current account but the income will be taxable as per individual slab rates. It is advisable to do trading from local account of yours. Don't use other accounts. It will land them in trouble. You can take phone consultation for detailed discussion.

Its legal to trade in crypto currency in India after the recent Supreme court judgement. It was legal earlier also but bank used to not allow to withdraw money from same because of RBI circular which has been clarified now by Supreme court. You can read more here: https://www.taxontips.com/now-dealing-and-settling-virtual-currencies-including-bitcoin-is-legal-in-india-judgement-by-supreme-court/

You can do it in personal level. Currently if volume is low you must show it as capital gain and later if the transaction increases you can convert it as business. They are same as derivatives.

You can do it in your personal name.

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Thank you.

You can do it in your name or else they would become liable for answering the queries.

Dear Ayush,

Hope you are doing well !!

1. Yes, it is legal.

2.Yes, it is ok to do it in your personal level.

It must be reported as a business unless you have only a few transactions in the financial year.

3.It would be better to do it in personal level.

-You should do it with your account (local resident)

-Sole proprietorship and Individual(personal) are the same things in the eyes of GST and Income Tax. All your income would be considered in your total income for Income Tax.

Hello,

1. The Reserve Bank of India (RBI) is planning to file a review petition in the Supreme Court. 

2. Proprietorship or Individual(Personal), both are one person in the eyes of Income Tax or GST, through the same PAN. Better to show it as a Business Income.

3. Through account on your name and not any family member.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Do it from your own account and anybody else's account. As mentioned earlier, Proprietorship or Individual(Personal), both are one person in the eyes of Income Tax or GST, through the same PAN.

Hi Ayush,

1. Its not specifically illegal to trade in crypto currency in India. Only difficulty would be to get the withdrawal in your bank account as many of the banks are not allowing it due to RBI restrictions.

2. You can do it in your individual name. Its same as properitorship as far as income tax is concerned. It will be treated as business income.

3. Yes, you should do it with your local account.

As mentioned in my previous response, properitoship is considered same as individual account under income tax. You can do it in your own name.