7 crypto tax myths bleeding Indian degens dry.
"No INR withdrawal = no tax" is just myth #1.
Most traders think they're safe keeping funds in USDT or not cashing out to rupees. Wrong. Indian tax law doesn't care about your withdrawal strategy.
The moment you sell crypto for profit, you owe 30% flat + 1% TDS on every trade. Doesn't matter if it sits in stables or stays on exchange.
Other myths wrecking portfolios:
- P2P trades are invisible (they're not)
- Loss offsetting works (it doesn't under crypto tax rules)
- Gifting crypto avoids tax (nope, receiver pays on disposal)
- Foreign exchanges = tax-free zone (laughably wrong)
Compliance isn't optional anymore. Exchanges report. Banks flag. ITR mismatches trigger notices.
Know the rules or pay the price later.
"No INR withdrawal = no tax" is just myth #1.
Most traders think they're safe keeping funds in USDT or not cashing out to rupees. Wrong. Indian tax law doesn't care about your withdrawal strategy.
The moment you sell crypto for profit, you owe 30% flat + 1% TDS on every trade. Doesn't matter if it sits in stables or stays on exchange.
Other myths wrecking portfolios:
- P2P trades are invisible (they're not)
- Loss offsetting works (it doesn't under crypto tax rules)
- Gifting crypto avoids tax (nope, receiver pays on disposal)
- Foreign exchanges = tax-free zone (laughably wrong)
Compliance isn't optional anymore. Exchanges report. Banks flag. ITR mismatches trigger notices.
Know the rules or pay the price later.
