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when do you pay that tax? you can convert it to paypal and then withdraw right?

Yes PayPal seems to be the best way to get money instead of using exchanges, exchanges are being monitored, and if my bank receives a payment from crypto exchange, they will inform the Tax dept and I'll be taxed. We are supposed to reveal all our crypto incomes mandatorily by filling up forms.

which exchange do you use in India? how do you convert BTC to INR without PayPal?