Bitcoin

India is trying to levy taxes on Bitcoin trading

The Indian Ministry of Finance has called for Bitcoin (BTC) tax laws to be passed in the country. According to the Times of India, the department’s Central Bureau of Economic Intelligence (CEIB) recently released a preliminary document that suggests imposing an 18% tax on goods and services when trading Bitcoin.

According to the CEIB, the estimated volume of Bitcoin transactions in the country is more than $ 5.4 billion. Therefore, the proposed tax could be 18% The government makes around $ 970 million in crypto taxes.

Under the proposed plan The CEIB is pushing for virtual currencies to be classified as “intangible assets”. They therefore fall within the scope of the GST with taxes on profits from trading activities.

India is trying to levy taxes on Bitcoin trading
India is trying to levy taxes on Bitcoin trading

In response to the news, Tanvi ratna, CEO of the Indian consultancy for crypto guidelines Policy 4.0, tweeted:

“Unfortunately, that doesn’t necessarily mean that cryptocurrencies are legal. Illegal income is also taxable under Indian law, and avoiding their taxes is considered a criminal act. “

Indeed in 2011, The Indian Treasury Department made it clear that tax evasion is a crime on illegal sources of income. At the time, the government reportedly tried to classify all forms of tax evasion as criminal offenses.

Aside from the Supreme Court lifting the Reserve Bank of India’s ban on banks serving crypto exchanges in March, Not much has happened to crypto rules in the country.

According to reports The lack of regulatory clarity prevents investors from getting more involved in the industry. However, India’s peer-to-peer cryptocurrency market continued to grow in 2020.

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