Busting the Myth on Crypto Tax Notices

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🚨 78% Tax on Crypto Traders? Here’s what You NEED to Know! 🧵 The TRUTH we will cover: ✅ Moneycontrol — Satoshi's - 78% Tax case ✅ What is unexplained money? ✅ Who is getting tax notices? Binance traders or ..? 😅 ✅ FTX traders? ... Guys 🤣

1️⃣ Satoshi's 78% Tax: What went wrong? First, what is this case all about? ✅ Satoshi sold crypto for INR. ✅ He received money in Bank. ✅ He did not know who the buyer is! Now, what happened next?

Now, Satoshi received a Tax Notice**. He was asked by the Tax officer to explain where money came into his Bank. 💡 Fair question, right? Yes. 🟢 Simple to answer? Yes. Then what went wrong? 🔥 (**How did he get notice? I have explained below.) 🕵️

The possible issue with Satoshi's case is ⁉️ He did not explain the source of money with evidence. ⁉️ He did not make the officer understand the trade. ⁉️ Or he was poorly represented. If you failed in all the above points, then it is "Unexplained money." Want to be SAFE? ↓

How to avoid 78% Tax? ✅ Explain clearly - when you get a notice! ✅ Use all documents you have to prove the trade. ✅ Take help from exchanges to get the details. 🤔 Most Important - Have a Good CA! 🕴️ Now, on to the next one! When do you get a notice?

⚠️ Will you get a Tax notice? It depends. Currently the people on target are 1️⃣ Traders on Indian exchanges 2️⃣ Traders on Local Bitcoins 3️⃣ High Value - P2P merchants (>1-2Cr) Well, Binance traders are not on target of IT Dept, yet. 😮‍💨

🧠 So, are you curious why Satoshi got a notice for just Rs.1 Lac? Maybe because of, 1️⃣ High Trading volume on 🇮🇳 exchanges OR 2️⃣ High-volume P2P trading through banks. If you only did P2P of Rs.1 lakh, you will mostly NOT get IT notice! Now, busting some misinformation 🕵️

❌ MC Claim: P2P traders on FTX getting notices? 🤣 ✅ Fact: FTX never had P2P trading. LOL! ❌ MC Claim: Trade records of FTX not available? ✅ Fact: FTX trade reports are available. This is misinformation. Continuing, now some major busting!

❌ CoinDCX claim: Binance P2P traders getting notices? 😓 ✅ Fact: Currently, notices are being sent to traders with A. high-value trading on 🇮🇳 CEX or B. full-time P2P trading with crores of turnover. ⚠️ There is NO notice till date issued ONLY to "Binance" P2P traders.

Are you in Trouble? How to avoid any Tax issues? ✅ Declare your Profits in ITR and pay the Tax. ✅ If you are a buyer, deduct TDS in P2P trade. ✅ If you get a notice, get the help of an Expert! 😃 If you are smart. You know what to do!

Well, that's all in Today's thread. I hope you found it useful. I have received many DMs; please expect a response by tomorrow! Until then, keep focusing on trading and Leave the taxes to me :D