2

I'm from India and have been trading in binary options for a while now, and have made some profit which I will be withdrawing through an e-wallet (Skrill/Neteller). Under what section do I declare my profits when I pay tax? Is there any special process/other factors that I need to consider?

EDIT: I've seen people (such as Dheer here) claim that binary options are equivalent to forex. I'm sorry, but I can't accept this response without proper citation. From what I have read, it is very often considered to be a form of gambling, which is not at all illegal in India and is taxable.

EDIT2: If I were to convert my e-wallet money to bitcoin - can I sell these bitcoins, declare the sale and pay tax on it?

  • I don't know how authoritative it is, but this Quora thread includes a post from Heramb Sharma who says "Sebi doesn't allow binary options on regulated derivative exchanges and they are illegal." and "Reserve Bank of India issued notification Circular No. 46, RBI/2013-14/265 A.P. (DIR Series), dated 17/09/ 2013, prohibiting overseas foreign exchange trading through electronic/internet trading portals". – TripeHound Sep 5 '17 at 6:46
  • @TripeHound Source is economictimes.indiatimes.com/b/binary-options/articleshow/…. Let's say I convert my e-wallet money to bitcoin. Do you feel there is a way to declare the income generated by selling those bitcoins and pay tax on it? – L.E Sep 5 '17 at 10:18
  • First, I know nothing in detail other than the link I found and having read the link you found (which also says binary options are illegal in India). Second, what's the idea behind converting to bitcoin and then selling (over just redeeming your eWallet)? All I can see you'd achieve is an extra set of conversion costs (I assume you'd pay twice). – TripeHound Sep 5 '17 at 10:52
  • @TripeHound It's pretty much the same either way. Both Skrill/Neteller convert to EUR before converting back to INR, so either way conversion happens twice. It's just that bitcoin appears to be more anonymous. – L.E Sep 5 '17 at 12:40
1

Under what section do I declare my profits when I pay tax?

You have to declare this as income from other source and pay tax as per tax brackets.

I'm from India and have been trading in binary options for a while now

Trading in India on binary options is illegal. If you are using Forex from India for trading, this is not allowed as per Foreign Exchange Management Act.

You must log in to answer this question.

protected by Chris W. Rea May 24 at 3:39

Thank you for your interest in this question. Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).

Would you like to answer one of these unanswered questions instead?

Not the answer you're looking for? Browse other questions tagged .