• Crypto arbitrage using debit card

Hi sir, i am purchasing bitcoin in foreign exchange through debit card and selling them in indian exchange and repeating the cycle . is there any legal complications in doing so. kindly let me know
Asked 4 months ago in Capital Gains Tax

Dear Sir,

 

Hope you are doing well !!

 

It is advisable to take a phone consultation for detailed discussion.

 

We may assist you in entire procedure.

Payal Chhajed
CA, Mumbai
5084 Answers
157 Consultations

5.0 on 5.0

Hi

 

There is no illegality as of now for trading in cryptocurrency in India. However, arbitrage arises when you are buying/selling cryptocurrency abroad and selling/buying them in India to get the benefit of changes in the rates. It implies that there may be usage of foreign exchange.

Since you will be selling in India and you are a resident of India, the profits that you earn in India will be taxable in India. You will pay taxes only on your share of profits. Further, currently there is no clarity on GST on bitcoin transactions.

Please have a phone consultation for details discussion.

Karishma Chhajer
CA, Jodhpur
2391 Answers
22 Consultations

5.0 on 5.0

Please take phone consultation for detailed discussion.

Vivek Kumar Arora
CA, Delhi
4079 Answers
346 Consultations

5.0 on 5.0

Hi,

 

You need to disclose the transaction to your bank by filing Form 15CA for each purchase transaction (payment transaction). For income transaction, you need to give details of source of money, for getting FIRC. 

 

Further, you need to pay income tax on profits earned from these transactions. There is no clear guidance on GST on bitcoin transactions but the government is planning to get it into GST net.

Lakshita Bhandari
CA, Mumbai
5475 Answers
551 Consultations

5.0 on 5.0

Hello,

 

Income Tax compliances and liability would arise on the profit part earned from these transactions.

Banking compliances would be there for foreign payments, such as Form 15CA.

 

 

Regards,

CA Hunny Badlani

 

Hunny Badlani
CA, Madhya Pradesh
2555 Answers
9 Consultations

5.0 on 5.0

Dear Sir

 

Yes, there are many. You need to be aware that bitcoin is not legal tender nad buying the same may end up in GST. Also, you need to take care of your income taxes well.

 

Thanks

 

 

Brijendra Tripathi
CA, Lucknow
143 Answers
3 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA