2 days ago · Following a lengthy period of preventing bitcoin companies from doing business with banks, India now says it’s considering imposing a large Goods and Services Tax (GST) . Dec 29, · Based on the CEIB estimates, India’s Bitcoin trading market is in excess of Rs 40, crore per annum (about $ billion). Levying an 18 percent tax on trading could result in an additional Rs 7, crore ($ million) in additional government revenue per year. Dec 29, · The Indian Government has moved towards potentially implementing a tax of 18% on Bitcoin trading in the country. According to reports, the central government is currently weighing a proposal to impose a Goods and Services (GST) tax on Bitcoin, which is estimated to amount to Rupees 40, crores ($ billion) annually.
What is tax on bitcoin in indiaIndia Is Considering a Heavy Tax on Large Bitcoin Transactions | Live Bitcoin News
The firm has pitched the idea to the Central Board of Indirect Taxes and Customs CBIC and claims that this could provide the Indian government with an additional 7, crores each year in tax-related revenue alone. India has never had a positive outlook on bitcoin. In early , the company initiated a ban that prevented all bitcoin and crypto businesses from working with standard banks. Thus, they could not garner bank accounts and were blocked from standard funding and traditional monetary services.
The ban was later removed, and it looked like India was really on its way towards becoming a solid bitcoin and cryptocurrency hub, though this is now looking like a dank possibility as well not just because of the new tax, but because India has hinted that it is now looking to ban all crypto trading on a general scale. The idea was widely criticized, as many analysts believed that with bitcoin and blockchain becoming mainstream forms of finance, the country would initially fall behind its neighbors and lose its competitive edge in the world of modern trades.
However, this new tax could be a direct response to that criticism. While this is purely speculative at the time of writing, it could be alleged that India is listening to the analysts and taking note. Instead, it thinks it can make a little money off its growing crypto base. One of the big problems that India is facing right now is that cryptocurrency is an unregulated haven. However, it is uncertain how the potential implementation of such a tax on cryptocurrency may impact the environment for trading crypto in India.
Samyuktha is a full-time journalist at AMBCrypto. Currently pursuing her Masters in Finance and Business Analytics, she is interested in cryptocurrencies, fintech, and blockchain technology adoption across various sectors. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.
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