Got fined ₹78K on a ₹1.5K crypto gain. All because of a P2P trade. What the hell, man.
I don't get why Govt hate us,,,Andrew (name changed) sold crypto tokens worth ₹98.5K via a P2P trade in 2022 and got ₹1L deposited to his Indian bank account. Profit? Just ₹1.5K. Last week, he gets a notice from the income tax department. They flagged the ₹1L deposit as “unexplained cash credit” and slapped a ₹78,000 fine. Yes. On a ₹1.5K gain. He submitted exchange statements, screenshots of the P2P chat, buyer profile etc. But it wasn’t enough. They wanted KYC-level proof ... PAN card of the buyer and full identity details. Like… seriously? Problem is, in P2P trades, that info just isn’t available. And under India’s updated Income Tax laws, if you can’t prove the source of income with hard KYC, they classify it as undisclosed and slap a 60%+ penalty. Andrew isn’t the only one. 50+ users reportedly got similar notices recently, just for trading crypto P2P. The worst part? He used a well-known Indian CEX with proper transaction history but the username/bank mismatch triggered the scrutiny. Honestly, the system here is broken. Imagine trying to be compliant and still getting wrecked for a trade that made you $20. I know this post might not matter globally, but for any Indian crypto users out there be VERY careful with P2P trades and reporting. The rules here don’t care about logic. submitted by /u/Weary-Hair-316 [link] [comments]
I don't get why Govt hate us,,,Andrew (name changed) sold crypto tokens worth ₹98.5K via a P2P trade in 2022 and got ₹1L deposited to his Indian bank account. Profit? Just ₹1.5K.
Last week, he gets a notice from the income tax department. They flagged the ₹1L deposit as “unexplained cash credit” and slapped a ₹78,000 fine. Yes. On a ₹1.5K gain.
He submitted exchange statements, screenshots of the P2P chat, buyer profile etc. But it wasn’t enough. They wanted KYC-level proof ... PAN card of the buyer and full identity details. Like… seriously?
Problem is, in P2P trades, that info just isn’t available. And under India’s updated Income Tax laws, if you can’t prove the source of income with hard KYC, they classify it as undisclosed and slap a 60%+ penalty.
Andrew isn’t the only one. 50+ users reportedly got similar notices recently, just for trading crypto P2P. The worst part? He used a well-known Indian CEX with proper transaction history but the username/bank mismatch triggered the scrutiny.
Honestly, the system here is broken. Imagine trying to be compliant and still getting wrecked for a trade that made you $20.
I know this post might not matter globally, but for any Indian crypto users out there be VERY careful with P2P trades and reporting. The rules here don’t care about logic.
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