Under increasing pressure and to take steps to clarify the question of crypto-currencies, the indian government could soon give a response more clear on one of the many aspects of these devices, namely taxation. The local media have put the spotlight on the budget of 2018, but many of the titles end with question marks.
The new financial framework should be presented next week by the minister of Finance. Recent developments suggest that the status of Bitcoin in India is likely to be determined.
The minister of Finance has answered many questions
All of the projectors are turned to the minister, Arun Jaitley, writes the Financial Express. The Indians are worried about the true intentions of the government. The members of the community of crypto-currencies in the country have called for government policy clear with regard to trade in digital currencies and taxation. Companies that are considering setting up new mining facilities and networks of sales points in the country have also called for clear guidelines to manage their activities.
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The clarity in matters of taxation, should be presented with the new budget. There are strong indications of the government’s rush to exploit the crypto-currencies, in spite of his hostility consistently to the Bitcoin. In December, the department of income tax carried out research in key constituencies. More recently, the traders of crypto-currencies have received notification from the tax authorities concerning the investments cryptographic.
What are the options ?
According to a tax authority, cited by, AND a special team has been investigating the applicability of the tax on the trading of Bitcoins. It has been estimated that some of them operate at profit margins of up to 20 % because of the difference between the rates of purchase and sale. Total revenues for the first 10 exchanges is about $ 6 billion.
Source : Alexandra, Pixabay. The Indians expect to see more details about the fee associated with Bitcoins.
Tax the income on the Bitcoin is another topic that needs to be clarified. As the RBI (Reserve Bank of India) and the ministry of Finance does not recognize the crypto-currencies as legal currency, two options are available. The tax on products and services may be perceived to height of 12 %, if they are regarded as goods, or 18 % if they are services.
Source : NewsBitcoin