Dec 29, · According to a report by the Times of India, the country’s finance ministry is working on modalities for the introduction of Bitcoin (BTC) tax laws in India. The ministry’s Central Economic Intelligence Bureau (CEIB) recently put forward a proposal to India’s Central Board of Indirect Taxes & Custom (CBIC) to consider imposing an 18 percent goods and services tax (GST) on Bitcoin trading . 2 days ago · India Is Considering a Heavy Tax on Large Bitcoin Transactions Nick Marinoff · January 2, · pm The relationship between bitcoin and India has always been a complicated one. Taxation of Bitcoins in India – The concept of cryptocurrencies and bitcoins is quite new in India. As such, there is no specific tax treatment for cryptocurrency transactions in India. The government also has not yet brought their taxability into the statute books.
Bitcoin india taxationIndia considers proposal to tax Bitcoin transactions at 18% - AMBCrypto
There is currently no regulator for cryptocurrency in the country and crypto exchanges in the country have continued to operate without the burden of regulatory compliance for the time being. However, it is uncertain how the potential implementation of such a tax on cryptocurrency may impact the environment for trading crypto in India.
Samyuktha is a full-time journalist at AMBCrypto. Currently pursuing her Masters in Finance and Business Analytics, she is interested in cryptocurrencies, fintech, and blockchain technology adoption across various sectors.
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The firm has pitched the idea to the Central Board of Indirect Taxes and Customs CBIC and claims that this could provide the Indian government with an additional 7, crores each year in tax-related revenue alone. India has never had a positive outlook on bitcoin. In early , the company initiated a ban that prevented all bitcoin and crypto businesses from working with standard banks.
Thus, they could not garner bank accounts and were blocked from standard funding and traditional monetary services. The ban was later removed, and it looked like India was really on its way towards becoming a solid bitcoin and cryptocurrency hub, though this is now looking like a dank possibility as well not just because of the new tax, but because India has hinted that it is now looking to ban all crypto trading on a general scale.
The idea was widely criticized, as many analysts believed that with bitcoin and blockchain becoming mainstream forms of finance, the country would initially fall behind its neighbors and lose its competitive edge in the world of modern trades.
However, this new tax could be a direct response to that criticism. While this is purely speculative at the time of writing, it could be alleged that India is listening to the analysts and taking note. Instead, it thinks it can make a little money off its growing crypto base. One of the big problems that India is facing right now is that cryptocurrency is an unregulated haven.