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Cryptocurrency ? What is the Stand of Govt on it and its taxation

SURANA (PROPRIETOR) (515 Points)

06 November 2021

Hello Everyone

Well in past i use to suggest my clients who use to deal in Bitcoin that Govt is against Cryptocurrency and there are trying to ban it... so be careful.

But as of today there seems to be no clear cut stand of Govt and the way we can see Advertising on Cryptocurrency on Social media, News Channel, News Print, Television... infact some of the celebrities have also started advertising it... so now what will be the future of it... will it be legal or illegal ? and what should be its taxation ?
Income from Capital Gain or Business Income or Other Income?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 08 November 2021

Presently there is no regulation governing cryptocurrencies in India.

During parliament session, the government has responded that if there was a legislative proposal regarding cryptocurrencies and their trading, , it would be introduced in due course. Finance Minister N. Sitharaman has said that the government will keep an open mind with respect to cryptocurrencies, given that it offers the scope for several promising innovations.

Even in the absence of a policy framework, cryptocurrency exchanges such as WazirX have developed robust systems that allow people to buy and sell cryptocurrencies in a seamless manner.

Experts say that the government may recognize cryptocurrency as an asset, like real estate, stocks or gold. This means that the government may levy capital gains tax on any profits made after selling cryptocurrencies, just as one does after selling real estate or stocks.

Finally, like all investments, trading in cryptocurrencies is subject to market risks. To be on the safe side, you should invest only as much as you can afford to lose.