Bitcoin Tax in india?
The price of Bitcoin which currently values around 10,000 dollars and has remained relatively stable got another blow when the South Korean government officials announced their plans to tax the bitcoin exchanges with a 22% corporate tax and 2.2% local income tax if they have an income above a given annual income ( 18.8$million). Within a few hours it was reported by Reuters that the income tax department of india has sent tax bills to the cryptocurrency investor based on data from few of the major bitcoin exchanges in Mumbai, Delhi, Bengaluru and Pune. The investigation revealed that $3.5bn worth of virtual currency had been traded in just 17 months, but few investors had included any of this information in their tax returns.
The department sent tax notices to people dealing in Bitcoin and other major virtual currencies demanding they pay tax on capital gains. They also asked for details of investors’ total cryptocurrency holdings and the source of their funds.Reuters reports the news has come as a shock to many investors as there is no formal tax policy in India that covers blockchain assets.
The Indian Government has issued several warnings against investing in cryptocurrencies over recent months, saying they are similar to Ponzi schemes.B.R. Balakrishnan, a director general of investment at the tax department, said the notices had been sent following the survey to assess the penetration and patterns of cryptocurrency trading.“We cannot turn a blind eye.
It would have been disastrous to wait until the final verdict was out on its legality,” Balakrishnan said to Reuters. The volatility of Bitcoin and other major cryptocurrencies has seen governments around the world trying to grapple with how to regulate the trading of the alternative asset.
Earlier this month, the (GFSC) launched the world’s first regulatory framework for blockchain technology.It means any Gibraltar firms that use blockchain to store or transmit anything of value belonging to others now must apply for a licence from the commission. In my previous article we discussed 'End of cryptocurrency?' Apparently we have not , with regulation we it might not remain as a scheme for quick but might sustain as a currency afterall. Sources: Reuters, Internet.