All traders in India should read this.
Do not delete your Binance account. If you are thinking of trading on another exchange that is not government-approved, without providing a PAN card and withdrawing all your money, then you are mistaken. The Income Tax Department now has an AI search tool that can trace your transactions from any exchange, even if it is not government-approved. When you provide your Aadhaar card or driving license to any non-approved exchange, you forget that your Aadhaar is linked to your PAN card.
You can deceive the government for some time, but if caught, you will have to pay a penalty of 50% to 200%, which is much more than saving 30%. There is also a possibility of 6 months of imprisonment, which can happen in very few cases.
If you delete your Binance account and receive an IT notice 1 or 2 years later, where will you get the Binance data from?
If you want to stay in crypto now, you cannot avoid the 30% tax under any circumstances; you have to pay it. Or invest for 4 years and forget about it; then see what happens. You cannot go against government policies, whether they are right or wrong, you have to accept them.
If you honestly pay 30% tax, you will have many options to transfer your profit into your bank account, and you will not have to rely on P2P. I have heard that Binance is working on a feature to directly transfer your funds to your bank.
Complete your KYC by submitting your PAN card by April 30 and pay your 30% tax and 1% TDS to the government account by June 30. You can claim the TDS back later.
(I do not personally support government policies, but you have no option but to pay taxes. If you get caught in any government case, it will also become difficult for you to obtain a visa in the future; keep this in mind.)
