Turnover Calculation for Crypto Trading income

Hey Kaal,

Great question on turnover calculation for crypto trading income, especially when the individual opts for business income and presumptive taxation under Section 44AD.

What counts as Turnover for Crypto Traders?

• Turnover = Gross receipts or total sales from the business activity.

• For trading in cryptocurrencies, turnover means the total sale value of crypto sold during the year — i.e., the sum of the sale proceeds (not profit or loss).

• Buying value or cost of purchase is NOT part of turnover.

Why?

• Under Income Tax laws, turnover is the gross inflow or revenue generated from business activity.

• Profit or loss is derived after subtracting cost (purchase price) from turnover.

So in your case:

• If someone buys 10 BTC at ₹30 lakhs each and sells all 10 BTC during the year for ₹40 lakhs each:

  • Turnover = ₹40 lakhs × 10 = ₹4 crores

  • Profit = Sale proceeds − Purchase cost = ₹4 crores − ₹3 crores = ₹1 crore

Presumptive Taxation U/s 44AD:

• Presumptive income = 8% (6% if digital payments) of turnover (gross receipts).

• So, the turnover to apply 44AD is the total sale value of cryptos sold during the year.

Summary:

I was promised guaranteed returns on my investment, but after investing my life savings, I realized it was a scam. The platform looked legitimate at first, but I lost access to my funds. I reported the case to Mrs. Doris Ashley, and I was grateful for her professional support and guidance. In just four days, she helped me recover my funds. I truly appreciate her services and recommend being cautious with online investments.

Text: dorisashley71  g m a i l c m