CRYPTOCURRENCY: “Cryptocurrency Enthusiasts Wait for Clarity”, as Zeebusiness put it on its webpage. Why?
Indian government is aiming at changing policies towards cryptocurrency trading and taxation.
And With the way things are going there are strong indications of the government’s eagerness to tap into crypto income, something they never supported earlier on. Back in December, the Income Tax Department carried out searches at major exchanges. More recently, Indian crypto traders received notices from the tax authorities. Clarity, in regards to taxation, is likely to be offered with the new budget.
Taxing bitcoin income is another subject that needs clarification. As both the Reserve Bank of India and the Finance Ministry do not recognize cryptos as currencies and legal tender, two options remain on the table. Goods and Services Tax can be levied at bitcoin and altcoins – 12%, if they are considered goods, or 18% if they are deemed as services.
Bitcoin, and cryptocurrency in general, is yet to be legally defined in India. Now it is neither classified as a commodity, an asset, nor as security or any other financial instrument. Some say there is no need to even mention bitcoin in the new budget. “It will die its own death”. So you think?
Well, Companies planning to set up new mining facilities and POS terminal networks in the country are into Confusion and asking for clear guidelines to steer their businesses.
The simple fact still remains that CryptoCurrency needs clarity. Crypto clarity in India would be the only way to solve this confusion between the Government and crypto investors.
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