How to pay tax on profits earned in Olymptrade

Hi,

While the taxation depends upon the underlying asset (crypto, forex, commodity) in which you have done the trade, but largely it will be your business income if the transaction are huge and done very frequently.

You should show the entire realised profit in your return irrespective of whether the money has been withdrawn or not. If you dont disclose it, it will be termed as undisclosed income and there are heavy penalties if the same is unearthed by It department.

For legality, pls consult with a regulatory lawyer but based on my limited understanding, its not strictly illegal.

- I think it is a derivative income. Under income tax it is a business income. You should disclose it in ITR. As you have mentioned net salary income is 2.80 lacs p.a., total income would be less than 5 lacs hence no tax. If the income is more than 5 lacs, you can take the benefit of Presumptive taxation scheme.

- Apply exchange rate of the date when you have realised the profits.

We can assit you in ITR filing and other related issues in dealing such foreign income.

Dear Sir,

Hope you are doing well !!

You should disclose the same as business income and pay the taxes on profit earned as per applicable slab rate while filing ITR. However, you can take the benefit of presumptive taxation scheme.

If you don't disclose it then you may get the notice from ITD and the same would be treated as undisclosed income.

Section 271AAB of the Income Tax Act, 1961 deals with the penalty provisions on undisclosed income.

According to various sources, Olymp Trade is not technically illegal in India but it is in no way monitored or controlled by SEBI or RBI.

We may assist you in ITR filing and entire compliances.

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

Hi

According to various sources, Olymp Trade is not technically illegal in India but it is in no way monitored or controlled by SEBI or RBI. This means if a trader faces any issues with regards to the app's transactions or collections then Indian authorities will not be able to help.

As per my understanding it will be taxable under business income.

If you don't disclose it will be treated as undisclosed income there will be huge penalty.

It comes under individual slab rate.

Tax Rates for Individuals as per budget 2019-2020

Income Tax Slab

(in Rupees)

Tax Rate for Individual Below the Age Of 60 Years

0 to 2,50,000*

Nil

2,50,001 to 5,00,000

5% of total income exceeding 2,50,000

5,00,001 to 10,00,000

Tax Amount of 12,500 for the income up to 5,00,000

+ 20% of total income exceeding 5,00,000

Above 10,00,000

Tax Amount of 1,12,500 for the income up to 10,00,000

+ 30% of total income exceeding 10,00,000

 At individual tax slab rate but in your case there will be no tax as the income is less than Rs.5 lacs and you will be eligible for rebate u/s 87A.

It would be as per the slab rate. Slab are as follows:

1. No tax till 2.5 lacs

2. 5% from 2.5 to 5 lacs

3. 20% from 5 to 10 lacs

4. 30% on 10 lacs onwards

Hi

Income Tax Slab

1. Upto 2.5 lakh Nil

2.  2. 5 lakh to 5 lakh is 5%

3. 5 lakh to 10 lakh is 20 %

4.  10 lakh onwards is 30 %