A special committee will be formed, which will decide how to tax those who earn bitcoin, and if GST can be applied in bitcoins.
The unprecedented increase in the valuation of bitcoins has undoubtedly shaken the government of India, and now they are quite serious about the income that is generated through bitcoins in India.
Soon a special committee will be formed, which will decide how to tax those who earn bitcoin, and the “millionaires”, and if you can apply GST in bitcoins.
Interestingly, RBI has not yet officially allowed the Indians to exchange bitcoins, but neither have they banned it. In these circumstances, does it make sense to tax the profits of bitcoins?
The Supreme Court is already hearing an argument related to the regulation of bitcoins, and things are quite uncertain at this time.
Benefits of undeclared Bitcoins Ready to pay the 200% penalty!
Reports are emerging from reputable publications, with respect to Govt. Last move to get Bitcoin benefits from the Indians, and no one will be saved, apparently.
If we believe in the Business Standard, then we can demand a 30% capital gains tax on all bitcoin profits, if they are held for less than 3 years, and a capital gains tax of 20% if they are They keep for more than 36 months. A concept taken from stock trading.
A high official government close to the developments said,
“The Bitcoin imposition is a gray area at this time, we still have to analyze it in detail, a panel can examine every problem, there are no guidelines at this time, a clarification can come.”
In addition, a heavy penalty has been devised for those who do not declare benefits of bitcoins. A fine of 50-200% is being devised for such cases, when a tax beneficiary does not declare bitcoin profits in a financial year, in addition to charging an interest of 12% per year, for the same.
Gob. The committee will decide the fate of the Bitcoin benefits in India
The value of bitcoins has increased beyond $ 19,000 (currently $ 16,000), and this astronomical increase of more than 1,200% in value within a year has clearly destabilized the Government. and RBI.
Reports say that a special panel will be established, which will decide how to tax bitcoin profits, and more importantly, whether the GST rules can be applied to bitcoin investments or not.
This is in direct contradiction to what RBI had recently said about the bitcoins in India, while ‘warning’ the Indians against its use:
“(RBI) has not granted any license or authorization to any entity or company to operate such schemes or deal with Bitcoin or any VC.”
This was RBI’s fourth warning against the use of bitcoins in recent years, and it clearly shows that although RBI is not willing to allow bitcoins in India, they are not prohibiting it either. And now, they want to tax it too.
But, to be fair to RBI, they have already admitted that blockchain is a technology that will help immensely to the banking system in the coming years, and bitcoins are based on blockchain technology.
Pretty confusing situation for a person who is a bitcoin investor, and wants to be clean in the tax rules and regulations.
The Supreme Court has already asked the Center to respond to a request regarding the regulation of bitcoin in India, and the matter is a sub judice.
In April of this year, there were rumors of tax policies for Bitcoin users in India, and now, with recent reports, it seems that the government. he wants to indirectly control bitcoins, but he can not come out, and he accepts that bitcoins have the power to change everything.
We will keep you informed.