full image - Repost: Common mistakes / ill practices about the Crypto Tax (from Reddit.com, Common mistakes / ill practices about the Crypto Tax)
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Hey guys, Like I said earlier, I will post frequently about Crypto Tutorials and Guides. This is my second post. If you haven't read the first one, You can read here.Today I wanted to post about a beginner guide, but looking at this Sub-reddit I thought this is more important with all the wild and incorrect suggestions being posted every now an then. I will write them in points. going from novice to advanced.Crypto Tax is not applied on unrealised profits (aka coins you're still holding and didn't sell) You only pay tax at the time of realising profit/loss. (aka selling coins and taking profit/loss)TDS applies from 1st July 2022. The maximum cap of TDS is ₹50,000 per year. you can also file for TDS return if you sell a coin at loss.Legally speaking you need to report income and pay tax on any kind of profits on any kind of wallets. But in certain types of wallet (DeFi and DEX) Government doesn't know who those wallet belongs to.You cannot offset losses period. Not from the same coin, not from a different coin, not from a different source of income. Nothing.P2P Marketplace isn't anonymous. While its definitely makes it harder to track, they can easily do it if they want to. So, please understand the risk if you are trying to avoid tax via p2p route.The Budget 2022 doesn't specify any rules on Mining, Staking, Lending, Borrowing, Airdrops, Forks, Crypto transfers, gaming, gifting, or Donations. If you read anything about it, its pure speculation or fake news. Please trust official government announcements onlyA lot of Accountants around the country are marketing themselves as Crypto-expert and giving you wrong information. Be very careful of themUsing Private Coins like Secret or Monero doesn't help us, normal people to evade tax. Let's be honest the government can't link you with your wallet address even though the transaction are public. By using those coins, you are supporting illegal activities and tbh private coins are frowned upon all over the world generally. Don't use it unless you need to. You waste a bunch of money on transfers too.There are a lot of fake news and illegal advices. So understand the risk yourself before jumping in it.
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