Bitcoin Trading Hits $3.5 Billion In India as HNIs Get Hit With Tax Notices!
Bitcoin trading is witnessing a boom in India. Infact, alt coin trading has seen an increase as well. As per the latest reports which indicate that cryptocurrency trading in India has hit an all time high of $3.5 Billion in the past 17 months.
In recent times I've written about how IT department raided exchanges which was followed by tax notices to HNI investors. The trading figures were discovered after these so called aggressive surveys by the government across 9 exchanges in the country.
Some find the move to be shocking but I am not surprised by it. However, many traders that I've interacted with ever since have been unhappy over the tax notices sent to them. You can view it here!
RBI and the finance ministry of the country has issued several warnings in the past. However, they continue to allow exchanges from operating legally. These exchanges operate within the legal boundaries and are fully transparent. But, the government continues to refuse to regulate cryptocurrency, and it's unlikely we'll see that happen anytime soon.
India bankers and some policy makers seem open to blockchain technology powering these cryptocurrencies but seem to be shying away from the tokens itself. In recent times banks have been found to arm-twist exchanges. You can also read this!
IT department is having a field day sending tax notices as for these guys it's a new source of revenue. If you are a Bitcoin investor, I recommend you read my article on filing your returns here! India continues to add over 200,000 new users every month and this figure is likely double up in the year to come.
I sincerely hope the government eases it's stand on trading in cryptocurrencies and opens up the market by regulating and forming an acceptable framework!
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bitcoin still hides a lot of surprises
Taxes were always going to be an issue. People think that crypto is exempt or immune from tax and many are set for a nasty shock. Declare gains and keep records or your in for a world of hurt!
Maybe there will come a time when all the money will be in the form of crypto only and we will spend it directly to buy the goods. Then there will be no tax. I heard tokenpay, a new ico is trying to do that by opening up their own debit cards and crypto bank. I don't know, any comments?
Sir
I withdrawal today at 8 a.m(india) from poloniex on steam doller (steamit.com).
Which did not happen. I also create a support ticket, but it has no advantage.(Complete error)
What should I do.
please help me
Cryptocurrency can't be stopped especially those highly private ones.
We just have to select those we had studied and believed in. They are valuable long term.
India has a ton of underground money that the gov can't get anyways, and their currency is very inflated. Cryptocurrencies should be the least of their concern.
Ton of underground currency, inflation, large economy, India............... sounds like a ripe market for crypto currency.
Dude are you sure that your not high?
They do it on purpose to extract profits, add more to their corrupt kitties. I am waiting for the day that they just stop bullying the thriving network under democratic pressures!
Long live blockchain and crypto!
good !
These days IT department is more vigilant to cryptocurrency exchanges and traders, due to its huge potential these days.
My friend had several cases filed against him and his only way of getting out was paying the fines.
Money that we pay to exchanges as service charges itself is too much. And after paying taxes, most trades were not worth it.
I personally think there should be a trader-friendly tax system specially for cryptocurrencies.
If the transactions have happened in the financial year then it can be shown in taxes of that year. If he is a trader he can show it as a bussiness income.
Even I believe everything happens with the visibility of Government. Some investors just panic. The exchanges also try hard to explain the investors but they are overloaded so many questions. My advice in this point of time is to diversify your holdings in some Indian exchanges as well as some foreign exchanges like Binance. When situation becomes fully supportive it can be brought back to Indian exchanges for cash out.
Yeah, Frank and I were looking into that the other day. In Canada, if you earn on Steemit and then convert it to another crypto and right away to CAD, then it's considered income. If I leave it in another crypto and that grows, it's considered capital gain. We only get taxed on capital gain once we cash it out in fiat, and from that about, we are taxed on half of it, which adds to our total revenue. It's a bit complex but we sorted a few things out for each our portfolios to make sense of it all. The important part os to keep track, like with CoinTracker and to print up your exchange history of trades and such. Then your income tax report person will take care of the rest.
This is a real potential game changer for taxing - it could get over the top. Capital gains must be tiered like they do for fiat. the thing is converting fiat to cryptocurrency has a fiat fee; then you exchange to another cryptocurreny - then another trader and blockchain fee, then converting back to fiat is another fee. Primary fiat taxing should only occur once (or at worst twice) - the rest stays crypto.
I agree. There should be no taxation for trading crypto to crypto at all. Only if traded to fiat.
Yes otherwise that would defeat the object of decentralized exchanges.