How do I declare my profits in binary options while paying income tax?

External question — Personal Finance Stack Exchange Author: L.E Original post: https://money.stackexchange.com/questions/84709 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. 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?

External answer — Personal Finance Stack Exchange Author: Dheer Original post: https://money.stackexchange.com/a/84713 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. 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.