Crypto Trading Tax liability
A person invested US $5000 in a Crypto high risk high profit investment in January 1st week.
Based on the advice and trading signals he's getting, the trades 4 times a day.
Each days trading profit is accumulated and traded next day.
In this trading, he has withdrawn his original investment of US$ 5k by mid February.
Now his investment as on date is US$ 12k and expected to reach 18k by 31st March is lying as USDT in a crypto trading exchange.
Another aspect to be kept in mind is there's no guarantee whether you will be able to withdraw the balance.
The question is whether is it sufficient to offer to tax on the amount withdrawn and report the investment balance in ITR? Or to pay tax on the difference of investment and balance outstanding plus amount withdrawn to tax and report balance outstanding in ITR?
CAclubindia
