India considers Bitcoin tax law to target $5B market

India’s finance ministry has required the enactment of Bitcoin (BTC) tax laws in the country. According to the Times of India, the ministry’s Central Economic Intelligence Bureau, or CEIB, recently sent a draft document that proposes levying an 18% goods and services tax on Bitcoin trading.CEIB figures put the estimated Bitcoin deal volume in India at over $5.4 billion. Hence, the proposed 18% tax might see the federal government making about $970 million from crypto taxation.As part of the

proposed plan, the CEIB is pushing for virtual currencies to be classified as “intangible possessions” to fall under the purview of GST with taxes imposed on the revenues made from trading.Reacting to the news, Tanvi Ratna, CEO of Indian crypto policy advisory company Policy 4.0, tweeted:

“Sadly, this does not necessarily indicate that crypto will be legal. Under Indian law, prohibited earnings is also taxable & & evading its tax counts as criminal activity.”

Certainly, in 2011, India’s finance ministry supplied explanation that tax evasion on illegal income sources was a criminal offense. At the time, the federal government was reportedly moving towards reclassifying all forms of tax evasion as criminal offenses.Apart from the Supreme Court reversing the Reserve Bank of India’s ban against banks servicing crypto exchanges back in March, not much has actually taken place by way of cryptocurrency guidelines in the country.The absence of regulatory clarity is supposedly preventing greater financier involvement in the industry. Nevertheless, India’s crypto peer-to-peer trading market continued to grow in 2020. Released at Tue, 29 Dec 2020 10:59:30 +0000

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